XRP Price Faces Crucial Test as Fed Meeting Looms

XRP's price is facing a crucial test in September as it approaches the $1.35 level after a strong August recovery.

The token ended the month with a gain of nearly 30%, but its reserves on Binance have fallen to their lowest monthly average since February 2024, indicating that some investors may be accumulating XRP.

Wintermute has warned that the Federal Reserve's Sept. 15-16 meeting could determine the next direction for risk assets, and a rate increase could lift yields and strengthen the dollar, reducing investor appetite for volatile assets such as XRP.

XRP ETF inflows reached a record $110 million during the week, but this may not be enough to sustain the token's price in September, especially if the Fed decides to hike rates.