The price of XRP has settled in the $1.40 to $1.45 range following a period of significant growth, with the token briefly reaching $1.70 in recent trading sessions. This pause in momentum comes as the $1.25 level emerges as a critical pivot point for the current market cycle.
Key support levels and technical indicators
Technical analysis from TradingView and on-chain metrics from CryptoQuant suggest that the $1.25 mark holds strategic importance for large holders, commonly referred to as “whales.” This level coincides with both the central Bollinger Band and the 0.5 Fibonacci retracement, derived from XRP’s surge from $1.00 to $1.70 in August. The alignment of these technical factors positions $1.25 as the primary support zone on the weekly chart.
For some traders and analysts, a return to the $1.25 range is seen as a healthy correction, providing the market with an opportunity to consolidate gains after forming a local high near $1.70.
On-chain data highlights that during XRP’s rally from $1.00 to $1.70, addresses holding between one million and ten million XRP acquired an additional 642 million tokens. This accumulation marked the first phase of heightened buying activity among major investors.
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AAPLWhale accumulation strategies and exchange dynamics
Recent data from CryptoQuant shows that XRP reserves on Binance climbed rapidly, reaching 2.62 billion tokens around the time of the most recent local high. This uptick in exchange reserves, occurring as XRP traded at $1.45, signals that some retail participants are taking profits at prevailing prices.
Large investors may use this elevated exchange supply to initiate the next round of purchases, aiming to accumulate XRP near the crucial $1.25 support.
Despite short-term increases, the broader trend points to a gradual supply shortage on major exchanges. In the past year, Binance’s XRP reserves have dropped from 3.1 billion to 2.6 billion tokens, with major holders systematically withdrawing coins and limiting the freely available supply.
| Exchange | XRP Reserves (1 year ago) | XRP Reserves (Now) |
|---|---|---|
| Binance | 3.1 billion | 2.6 billion |
Upcoming US Senate vote and potential market impact
Market participants are now closely watching regulatory developments in the United States. On September 15, the US Senate is set to hold a key procedural vote on the CLARITY Act, legislation aimed at clarifying the legal standing of digital assets and determining whether oversight will rest with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
The anticipation surrounding this vote is contributing to heightened volatility in the XRP market. Many large wallets appear to be strategically completing purchases at or near the $1.25 pivot zone as the regulatory decision approaches.
Mini dictionary: CLARITY Act, US legislative proposal aiming to define the regulatory framework for digital assets, clarifying whether oversight will fall under the SEC or CFTC.
XRP reserves on Binance rose to 2.62 billion as whales prepare for the next accumulation phase near $1.25, anticipating US regulatory action that could shape the digital asset landscape.
