XRP (XRP-USD) spent August stuck in reverse, dropping more than 8% while the broader crypto market gained 14%. This has traders wondering if September could be the month the token flips momentum back in its favor. Luckily for them, history and technical charts suggest it might.
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Watch XRP Form a Falling Wedge
The daily chart shows XRP moving inside a falling wedge, which is a classic pattern that often signals a bullish reversal. Since peaking near $3.66 in July, the token has been drifting lower inside two narrowing lines. That usually reflects fading selling pressure and the potential for a breakout.
If XRP can push above the wedge’s upper boundary, analysts see a run toward $3.25. That would be about 15% higher than where it trades now.
What gives this pattern more weight is the 200-day exponential moving average, or EMA. XRP has managed to stay above this long-term support at $2.50. In the past, holding this line has sparked strong rallies. A break below it would damage the bullish case, but for now the wedge setup is holding firm.
Spot the Cup-and-Handle in Play
Looking at a wider timeframe, XRP’s chart also hints at a possible cup-and-handle formation. The recent pullback resembles the handle, which can set the stage for an even larger breakout.
If the formation is confirmed, analysts believe the move could drive XRP toward $5. That would be a major step up and one of the strongest technical signals the token has seen in months.
Again, the 200-day EMA is the key level to watch. Staying above it keeps the bullish outlook alive. Losing it could push prices lower and force traders to rethink their positions.
Remember September’s History of Big Gains
Seasonality also tilts in XRP’s favor. In past years, when XRP closed August with heavy losses, it often bounced back strongly in September.
In 2017, XRP fell by more than 23% in August, only to rebound 28% in September. In 2021, the drop was even bigger, at 34%, but the following month delivered a 33% rally. On average, September comebacks after weak Augusts have added over 30%.
This history suggests traders may see current weakness as an entry point, especially with Q4 often being one of crypto’s stronger periods. Bargain hunting and fresh capital could help XRP turn the page as September begins.
At the time of writing, XRP is sitting at $2.7780.
