XRP’s brief rally in August has now fully subsided, with the token currently trading at $1.34 to $1.37. Market data from TradingView indicates that volatility has largely vanished, as the Bol
XRP’s brief rally in August has now fully subsided, with the token currently trading at $1.34 to $1.37. Market data from TradingView indicates that volatility has largely vanished, as the Bollinger Bands have narrowed into a tight, horizontal channel on the daily chart. Such periods of low fluctuation, often called “anti-volatility,” typically signal a pause in market activity for the asset.
Liquidity dries up as major events approach
This extended calm is not without reason. Key institutional investors and large traders have shown a clear hesitancy to open new positions, preferring to wait until after important macroeconomic events scheduled for next week.
One major factor is the upcoming U.S. Senate vote on the CLARITY Act, set for September 15. This legislative proposal, which had been stalled over the summer, has prompted many players to hold back on market activity. During this period, capital inflows into XRP exchange-traded funds (ETFs) have fallen sharply, dropping by 93%.
Another significant development is the Federal Reserve’s planned interest rate announcement on September 16. With U.S. inflation on the rise and the Producer Price Index reaching 5.4%, combined with Brent crude oil prices exceeding $107 per barrel, the market is increasingly expecting a hawkish turn from the central bank. The current probability of a rate hike stands at 70%. As a result, institutional investors are largely reallocating assets toward cash positions to reduce risk exposure.
Against this backdrop, XRP appears to be supported from a deeper price decline by a shift in holder behavior. CryptoQuant, a leading analytics platform, reported that after a notable influx of XRP onto exchanges on September 9, a quick reversal occurred as tokens rapidly exited trading platforms. In one day, reserves on Binance—the world’s largest crypto exchange—dropped to 2.631 billion XRP.
This retreat to self-custody was triggered by XRP touching a local low of $1.33, which prompted many traders to cease selling and instead withdraw their coins in anticipation of further news.
Market outlook: Possible scenarios for XRP
Historical data from previous accumulation cycles reveals two likely timeframes for XRP’s ongoing consolidation.
Shorter cycles lasted between 79 and 89 days during local recovery periods observed in 2025. Should this pattern repeat, a renewed bout of price action might not appear until late November or early December 2026.
The macro cycle, however, points to a much longer drift. Before the rally at the end of August, XRP spent nearly eight months—236 days—in a prolonged sideways phase. This would imply that a new breakout is unlikely until as late as spring 2027 if bearish conditions persist.
Cycle TypeDurationPotential Reaction DateShort cycle79–89 daysLate Nov – Early Dec 2026Macro cycleUp to 240 daysSpring 2027
Periods of anti-volatility, marked by tight Bollinger Bands and low trading activity, have been followed by lengthy sideways moves for XRP. Current price action appears linked to major upcoming events in the macroeconomic and regulatory landscape, as participants wait for fresh catalysts to dictate the next trend.
With the consolidation phase underway, the true duration of XRP’s subdued trading will likely be set by the outcomes of both the Senate’s decision on the regulatory bill and the Federal Reserve’s interest rate policy in the coming days.
Mini dictionary: CLARITY Act, a proposed bill in the U.S. aimed at providing regulatory direction for digital asset markets, with potential implications for how cryptocurrencies like XRP are classified and governed.
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