XRP Plunges Below Key Levels as Rate Hike Expectations Increase

XRP has fallen sharply in recent days, wiping out most of its August gains and leaving it 25.3% below its $1.70 high. The token now needs a significant recovery to reclaim its previous levels, with an 18.1% gain required to reach $1.50.

The Federal Reserve's decision on September 16 is the next major test for XRP, which has already weakened as rate-hike expectations increased. A softer Fed outcome could give XRP room to recover, but a rate hike or hawkish Fed could add more pressure.

Santiment data shows that XRP has moved in the opposite direction from August in seven of the past eight years, and this pattern was especially clear after strong August gains. Institutional demand provides some support for XRP, with Goldman holding roughly $87 million in XRP exposure and Schwab disclosing XRP ETFs as repo collateral.