$XRP now sits at a major crossroads after its latest rally, and multiple factors could determine its next direction from here.
After rising to nearly $1.70 two weeks ago, $XRP met resistance at that level and has continued to pull back. The cryptocurrency now trades around $1.37, leaving its next move uncertain.
Amid the correction, chart data now indicates that several technical and fundamental factors could determine $XRP’s next direction. Notably, $XRP has seen a volatile 24 hours, with trading volume reaching about $2.02 billion.
The recent decline follows the asset’s recovery from the $1.00 psychological level to a peak near $1.70. So far, the pullback looks more like profit-taking after a strong recovery than a clear change in the broader trend.
$XRP Faces $1.36 Support and $1.51 Resistance
The $1.40-$1.36 range is now an important support zone for $XRP. Holding this area would help the cryptocurrency maintain its recent recovery structure and keep buyers in control. However, a break below this zone could put more pressure on the price and weaken the current setup.
$XRP also faces strong resistance between $1.45 and $1.51, where large sell orders and whale distribution could make further gains more difficult. A daily close above $1.51 would give buyers a stronger signal and could send $XRP toward $1.60 and beyond.
Moving averages currently point to a buy signal, while the 14-day Relative Strength Index (RSI) has cooled to around 43. This puts $XRP in neutral territory, meaning the asset is neither overbought nor oversold. As a result, there remains room for a strong move once buyers or sellers take control.
Technical Factors That Could Dictate the Next $XRP Move
In this position, derivatives activity is one factor to watch. Notably, recent selling pressure across the derivatives market has pushed weaker long positions out of the market, increasing the risk of a leverage squeeze.
For instance, in the last 12 hours, long liquidations have totaled $1.70 million, accounting for nearly 77% of the total $2.21 million figure. Over the past 24 hours, liquidated longs have reached $2.13 million, a 64% share. This could add to $XRP’s volatility as traders react to movements around the key support and resistance levels.
Institutional activity, however, continues to provide a more positive backdrop. Spot $XRP ETFs have recently recorded about $1.66 billion in cumulative inflows, and reports suggest that traditional brokers are looking to expand their custody options.
Greater access through established financial firms could support $XRP demand if broader market conditions remain favorable.
Fundamental Factors
Meanwhile, regulation could have an important impact on $XRP’s next direction. The proposed CLARITY Act would confirm $XRP alongside other assets as a digital commodity under the oversight of the Commodity Futures Trading Commission (CFTC).
If passed, the legislation could bolster $XRP’s regulatory position following its court victory and reduce some of the uncertainty that may still concern more cautious investors.
The Senate’s Sept. 15 cloture vote will also remain on the market’s radar. Polymarket currently places the odds of the bill advancing this year at 15%, suggesting that traders have already priced in a high chance of a delay.
$XRP Could Target $2 or Fall Back Toward $1
A successful vote could create strong institutional demand and trigger a supply squeeze, helping $XRP break through nearby resistance.
If buyers clear $1.51, $XRP could then move toward $1.60 and potentially reach the $2.00 level by late September. However, $XRP would first need to overcome the $1.45-$1.51 resistance area and establish a clear break above $1.51.
On the other hand, a failed vote or a delay beyond the midterm period could hurt market confidence. Without additional legislative support, $XRP would continue to rely on existing judicial precedents and could face renewed selling pressure toward the $1.00 support level.
Regulatory clarity could also have a wider impact on $XRP’s long-term use. A clear legal framework could give traditional banks more confidence to hold $XRP and use it for settlement.