XRP prices took a sharp turn in August, leaving traders facing the ‘August Curse’. While initially surging over 8% to peak around $3.23 on August 8th, the momentum failed to sustain itself, resulting in a 6% drop over the last ten days. The coin currently sits around the $3 mark, with buyers and sellers locked in a tight range between $2.95 and $3.05. This leaves XRP vulnerable as it needs to hold onto this crucial level – any breakdown opens the door for further downward pressure, potentially pushing prices back towards the early-summer base of approximately $2.80.
This pattern is not unique to August; previous years have also shown a consistent negative trend. In 2018, 2019, and 2022, the month ended with significant drawdowns – -23%, -19.2% and -13.6% respectively. The average return in August is roughly 1.03%, but the median is significantly negative at -5.72%. This explains why we often see these modest fluctuations even when broader markets are trending upwards.
The current market landscape requires XRP to regain $3.10-$3.15 and break above this level to create a balanced month. If it slips below, the risk of further decline towards $2.90 will increase, potentially leading to another test of the lower-level support at $2.80.
While September saw an average positive return for XRP, with a median showing slight negativity at -0.32%, the August trend suggests a possible resurgence. However, it is essential that XRP holds onto the crucial $3.14 level to mitigate further losses and potentially push the price back to its previous high.