Ripple’s XRP is entering September under heavy selling pressure, with the token stuck in a descending parallel channel since early August. Despite multiple attempts to break higher, sentiment remains firmly bearish — and on-chain data suggests traders aren’t done selling yet.
XRP Stuck in a Downtrend
A descending parallel channel is one of the clearest signs of a market under stress. It forms when an asset consistently posts lower highs and lower lows within parallel trendlines, signaling that every bullish push is being overwhelmed by sellers.
That’s exactly what XRP has faced since August 2. The token has tested resistance several times in recent weeks, but each breakout attempt has quickly been met with sharp selloffs, keeping price action pinned inside the bearish channel.
On-Chain Data Shows Rising Selling Pressure
Fresh exchange data backs up the weak technical picture. According to Glassnode, XRP balances on exchanges have climbed 2% since August 27, hitting 3.32 billion XRP worth around $9.3 billion.
Why does this matter? Rising exchange balances typically signal that holders are moving tokens from private wallets to exchanges — often to take profits or prepare for selling. More XRP sitting on exchanges means more liquidity, which can push prices lower if demand doesn’t keep up.
Technical Indicators Lean Bearish
XRP’s Moving Average Convergence Divergence (MACD) indicator is also flashing warning signs. The MACD line has remained below the signal line since July 25, a setup that points to weakening momentum and declining buy-side interest.
As long as this bearish crossover holds, traders may view it as confirmation that sellers are in control.
Key Levels to Watch in September
- Immediate Support: $2.63 — if bears push past this level, XRP could extend losses toward $2.39.
- Upside Target: $2.87 — a clean break above this level could signal that bulls are regaining ground.
For now, the path of least resistance appears downward. XRP will need a surge in demand — or a shift in broader market sentiment — to escape the channel and reverse its trend.
September is shaping up as a pivotal month for XRP. With exchange balances rising, technicals weakening, and momentum favoring the bears, the token faces an uphill battle. Unless bulls defend the $2.63 support floor, the risk of deeper losses looms large.
