XRP's 28% Rally May be Short-Lived as History Suggests Reversal in September

XRP's August rally of nearly 29% is one for the record books, and its timing could be key to understanding what comes next. The price surge was largely driven by exchange-traded fund (ETF) buying, with US spot XRP funds taking in $153.55 million during the month.

However, history suggests that September may see a reversal of fortune for XRP. In seven out of the last eight years, XRP's September price has moved opposite to its August price, with five of those six years seeing August fall and September rise.

Santiment's HODL Waves data shows that wallets holding XRP for three to six months cut their share of supply during the rally, while those holding for one week to one month nearly doubled theirs. This suggests a change in hands, with new buyers entering the market at the peak of the rally.

XRP currently trades near $1.36 and is stuck in a falling channel since January. Losing the current support zone between $1.34 and $1.36 could lead to a drop to $0.58, repeating the pattern seen in January's fall.