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XRP opened September near $2.77, coinciding with expectations in a month historically dubbed weak for cryptocurrencies.
Possible reasons that September often appears weak include profit-taking in April and May, which can cause a market drop before a recovery in "Uptober" to "Santa rally" in December, culminating in a positive Q4 performance.
A weak September performance is not exclusive to cryptocurrencies, as equities also show weakness around this time of year. It appears this trend always tempers expectations for the month; however, this September seems to be coming with crosscurrents.
Fed officials have hinted at a potential rate cut at the upcoming September meeting scheduled for 16th and 17th of this month, raising positive expectations in the markets.
Lower borrowing costs are deemed beneficial for risk assets, including cryptocurrencies; if this is the case, a bit of volatility might be expected, pushing digital assets higher.
Analyst maps bullish path for XRP
At the time of writing, XRP was down 0.72% in the last 24 hours to $2.82. XRP closed August down 8.16%, sparking expectations for what September might bring.
After five straight days of drop at August's close, XRP rebounded from a low of $2.70 on the first day of September.
According to Ali, a crypto analyst, the $2.70 level remains crucial for XRP's bullish trajectory in September.
In a tweet, Ali outlined the bullish path for XRP in September. First, XRP must defend the $2.7 level as support. If this is achieved and price makes a U-turn from here, XRP might ascend higher to reach $2.9.
A sustained break above $2.90 would be needed for XRP to sustain its bullish momentum and target $3.70.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team