Institutional Selling Triggers XRP Decline Despite 3% Gain on Powell’s Rate Cut Signal
August 22, 2026 — XRP faced intense selling pressure as institutions offloaded approximately 470 million tokens across major exchanges between August 21 and 22, leading to a sharp price decline that overshadowed an earlier 3% rally sparked by Federal Reserve Chair Jerome Powell’s comments suggesting a possible rate cut in September.
Powell’s dovish remarks briefly lifted Bitcoin and other major cryptocurrencies, including XRP, pushing the token up. However, the substantial token selloff created strong resistance near $2.92. Regulatory uncertainties and a recent security report ranking XRP Ledger lowest among major blockchains added to the bearish sentiment.
Key Market Developments
- Institutional liquidations dominated, with 470 million XRP sold off across exchanges, fueling downward price pressure.
- On-chain settlement volumes surged 500% to 844 million tokens on August 18, indicating increased network activity despite price weakness.
- The SEC delayed decisions on XRP ETF applications, including Nasdaq’s CoinShares filing, pushing expected rulings to October and increasing regulatory uncertainty.
- A recent security assessment ranked the XRP Ledger lowest among 15 blockchains, raising concerns over its robustness.
Price Summary
- XRP dropped 3.1% over a 24-hour period ending August 22, falling from $2.89 to $2.80.
- The price fluctuated within a $0.12 range (4.25% volatility), between $2.92 resistance and $2.80 support.
- The sharpest move occurred on August 21 at 19:00 UTC, where XRP faced rejection at $2.92 on 69.1 million volume.
- In the final hour of trading on August 22, XRP slid 2.5% from $2.82 to $2.80 on 7.2 million volume, confirming bearish momentum.
- Support held near $2.80–$2.85 but showed signs of weakening after repeated tests.
Technical Overview
- Resistance at $2.92 was confirmed by heavy volume rejection.
- Support zone $2.80–$2.85 remains vulnerable amid decreasing buying pressure.
- Volume surged to 96 million on August 22 at 11:00 UTC, signaling sustained selling activity.
- The $0.12 trading band highlights concentrated volatility during the period.
- The late-session selloff with rising volume confirms the continuation of bearish pressure.
What to Watch Next
- Whether $2.80 support can hold; a break below could accelerate the decline toward $2.75.
- Upcoming ETF rulings in October, which will likely influence institutional demand.
- Whale accumulation trends and growing on-chain adoption despite muted price action.
- The $2.92–$3.00 resistance zone as a key breakout point for a potential bullish reversal.
