It appears that altcoins are going to have a volatile start to the month of September.
The market has had a parabolic run over the past 24 hours, with many large-cap coins breaking through crucial resistance levels. XRP is no exception, with its price approaching the $1.15 level. This level has been previously rejected twice since July, and it remains one of the strongest supply areas for the altcoin. As a result, the main question arises whether XRP will encounter a third rejection at the $1.15 level.
Technically, the odds don’t look too far-fetched, as the daily RSI is already above 70. This suggests that the altcoin is in an overbought area. Moreover, the 4-hour RSI is even crossing the overbought threshold of 80, which marks the extremely overbought territory. Thus, XRP has a high chance of facing a bearish reversal soon after breaking through the $1.15 resistance level for the third time.
Further supporting the argument is the main catalyst for the increase.
Notably, Ripple CEO Brad Garlinghouse was among those who met with U.S. President Donald Trump and other executives. As the news began to spread on social media, the price of XRP surged by almost 15% and set its first significant parabolic rise in months. However, the positive scenario was not limited to XRP.
Instead, other large market caps crossed significant resistance levels with double-digit rebounds. Therefore, in this situation, “FOMO” may well be the catalyst for XRP to avoid another bearish scenario. If the momentum around Ripple [XRP] builds up, can it break through resistance and finally escape the confines of the two previous failed attempts?
XRP faces a crucial resistance test
Currently, we are witnessing a DeFi-driven XRP price trend.
According to DeFiLlama, the total value locked (TVL) in the XRP Ledger experienced an increase of more than 11% during the last 24 hours. At the same time, the supply of stablecoins rose by over 10% on a weekly basis. This suggests that the TVL growth and overall capital deployment on the blockchain network are positively correlated with XRP’s price performance.
Furthermore, once we take a closer look at the chart above, it appears that XRP ETFs have already seen more than $8 million in inflows this week with less than two days remaining. It marks the highest weekly inflows recorded in August so far.
In this scenario, the increased onboarding wave for DeFi will create another positive impulse for XRP’s ETF flows. This means that FOMO is not far away and may resurface shortly.
This, in turn, would allow it to beat the two consecutive rejections and potentially attract even more FOMO funds into XRP.
