XRP bucks September downturn, technicals and ETF inflows point to 12% rally

XRP’s historical performance stands out

Technical analyst Xaif Crypto highlighted that since 2018, XRP has delivered a positive monthly close in September five times, compared to just three negative months. During these periods, the average return for XRP reached 12.19% despite broader market hesitancy.

This recent trend sets XRP apart from Bitcoin, which typically faces downward corrections heading into September. As August ended, XRP, Stellar (XLM), and Bitcoin each formed identical weekly technical formations, an unusual synchronization that analysts describe as rare for the market.

All three cryptocurrencies rebounded from their local lows and are now testing important price levels for continued recovery. Currently, the key support for XRP is $1.35, while Bitcoin is consolidating at $77,600.

Technical analysts view the synchronized patterns among these top cryptocurrencies at the start of a new month as a signal that significant capital may be positioning for a strong upward move. The alignment, just ahead of September, carries weight given the market’s cautious mood.

Mini dictionary: Xaif Crypto is a technical analyst known for using historical trading data to identify price trends and statistical patterns in cryptocurrencies, often followed by digital asset traders for technical insights.

ETF inflows, legislation and escrow support XRP outlook

Several developments beyond chart patterns are also underpinning the optimistic scenario for XRP. At the end of August, weekly net inflows into spot XRP exchange-traded funds reached $110.49 million, according to SoSoValue. The total assets under management in these ETFs now stand at $1.44 billion.

Banking giant Goldman Sachs, one of the world’s leading financial institutions, disclosed in its latest 13F regulatory filing holdings of over $86 million in XRP ETF positions, further signaling growing institutional interest in the cryptocurrency.

A key political catalyst is also on the horizon. The US Senate is scheduled to vote on the CLARITY Act on September 15. If approved, the legislation would define XRP as a digital commodity and could significantly reduce regulatory uncertainty for market participants.

Meanwhile, Ripple’s monthly escrow release—scheduled for September 1—will unlock 1 billion XRP tokens. Historically, between 600 million and 800 million of these tokens are promptly returned to new escrow contracts, minimizing any potential selling pressure on the market.

XRP, XLM, and Bitcoin each formed identical weekly chart setups at the end of August, rebounding from local lows and testing critical price levels that could set the stage for a strong upward move in early September.

Market analysts note that this combination of technical signals, surging institutional inflows, supportive political developments, and managed token unlocks could enable XRP to continue outperforming its historical September averages, despite long-standing market skepticism.