XRP News Today: Crypto Sell-Off Deepens, XRP Faces Key $2.8 Support Test; BTC at $112k

XRP Joins Broader Crypto Market Correction in Absence of Price Catalysts

XRP has faced intense selling pressure in recent sessions as the SEC vs. Ripple case draws to a close. Investors’ hopes of a swift end to the Ripple case and approval of pending XRP-spot ETFs have faded, leaving XRP exposed to broader market dynamics.

Notably, XRP has fallen 15% since the SEC and Ripple filed the Joint Stipulation of Dismissal, withdrawing their appeals. Investors await the US Court of Appeals’ approval of the Joint Stipulation of Dismissal. However, an end to the Ripple case is unlikely to trigger crucial events to incite a breakout. These key events include:

• XRP-spot ETF approvals: This week, the SEC delayed its decision on SOL-spot ETFs until October. The delay reduced the chances of an early launch of XRP-spot ETFs, which also have October deadlines.
• Ripple’s US-chartered bank license is pending, with the OCC having 120 days to decide on Ripple’s application for a banking license, potentially in October.
• CLARITY Act vote: Congress is in recess until September, leaving crypto legislation on ice.

While these key events are crucial for XRP’s price outlook, Ripple’s strengthening position as an alternative to SWIFT could be another XRP tailwind. Ripple CEO Brad Garlinghouse recently predicted it could capture 14% of SWIFT’s transactions within the next five years. This would be significant for XRP adoption, given the size of SWIFT’s remittance business.

While XRP pulls back below the $3 level, the October events could be pivotal for XRP and the broader crypto market.

XRP Price Outlook: Appeal Withdrawal and Spot ETFs in Focus

XRP tumbled 6.56% on Tuesday, August 19, following the previous session’s 0.88% loss, closing at $2.8619. The token underperformed the broader market, which slid 3.43% to a total crypto market cap of $3.74 trillion.

In the near-term, XRP’s price outlook hinges on several key catalysts, including:

• XRP-spot ETF headlines.
• XRP Treasury Reserve Asset adoption
• Ripple’s US-chartered bank license application.
• SWIFT-related updates.
• Legislative developments.

A breakout above the 50-day EMA could enable the bulls to target the psychological $3 resistance level. A sustained move above $3 may pave the way to $3.10. However, a break below $2.8 opens the door to testing the August 3 low of $2.7254.

Explore our full XRP forecast here for key breakout zones and timing insights.

Bitcoin Slides Below Crucial Support amid Jackson Hole Jitters

While XRP extended losses on spot XRP ETF disappointment, Bitcoin (BTC) closed below the key $115,000 support level for the first time since August 5. Recent inflation-linked US economic data has fueled uncertainty about the Fed’s policy stance ahead of the Jackson Hole Symposium.

Fed Chair Powell will speak on Friday, August 22. The Fed Chair may signal a delay to interest rate cuts to continue assessing the impact of tariffs on import prices and inflation.

Delays to Fed rate cuts would keep borrowing costs elevated and strengthen the US dollar, impacting BTC’s store of value position. On the other hand, support for multiple Fed rate cuts could soften the US dollar, reduce borrowing costs, and boost demand for BTC and other risk assets.

US Crypto-Spot ETF Market Extends Outflow Streak

Market concerns about Chair Powell’s stance on monetary policy also impacted spot BTC ETF flows. According to Farside Investors, the US BTC-spot ETF market reported total net outflows of $121.7 million on August 18. Outflows accelerated on August 19. Key flows included:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $246.9 million.
• Grayscale Bitcoin Trust (GBTC) reported net outflows of $115.5 million.
• Bitwise Bitcoin ETF (BITB) had net outflows of $86.8 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $63.3 million.

With BlackRock (BLK) iShares Bitcoin Trust (IBIT) flow data pending, total US BTC-spot ETF outflows reached $523.3 million, potentially extending the outflow streak to three sessions. BTC flow trends remain crucial for the supply-demand balance and the token’s price trajectory.

BTC Price Outlook: The Fed and Spot ETFs in Focus

Bitcoin slid 2.94% on Tuesday, August 19, following the previous day’s 1.03% loss, closing at $112,881.

Looking ahead, several key events will dictate the near-term price trajectory. These include:

• Fed monetary policy stance: FOMC Meeting Minutes, Fed commentary, the Jackson Hole Symposium, and Fed Chair Powell’s speech.
• Services PMI and US Jobless Claims.
• Legislative developments on Capitol Hill.
• BTC-spot ETF flows.

Potential scenarios:

• Bearish Scenario: Legislative roadblocks, increasing US stagflation risks, hawkish Fed rhetoric, and ETF outflows. A combination of these may drag BTC to $110,000, exposing the psychological $100,000 support level.
• Bullish Scenario: Bipartisan support for the CLARITY Act, easing US recession risks, dovish Fed signals, and ETF inflows. In this case, BTC could target the record high of $123,731.

Key Market Drivers to Fuel or Derail a Breakout

Traders should track the following key developments to determine whether XRP and BTC rebound:

• XRP-spot ETF headlines.
• Legislative news: The CLARITY Act.
• US Economic Data.
• Fed commentary: Hawkish or dovish signals.
• ETF market flows: Flow trends crucial for BTC’s supply-demand balance.

See where analysts expect XRP and BTC to head as legal and political risks evolve.