
Heavy Institutional Selling Sparks XRP Selloff Despite 3% Rally on Powell’s Rate Cut Signal
August 22, 2026 — XRP experienced a sharp selloff after institutions offloaded approximately 470 million tokens across major exchanges during August 21–22, overshadowing a brief 3% price spike triggered by Federal Reserve Chair Jerome Powell’s indication of a potential September rate cut.
Powell’s comments boosted Bitcoin and key altcoins, including XRP, pushing the token higher initially. However, the massive selloff triggered strong resistance near $2.92, compounded by delays in XRP ETF approvals and a recent security rating that ranks XRP Ledger at the bottom among major blockchains.
Market Highlights
- Institutional liquidations drove a significant selloff as 470 million XRP were moved across exchanges, fueling downward pressure.
- On-chain settlement volumes surged by 500% to 844 million tokens on August 18, reflecting growing network usage despite price weakness.
- The SEC postponed rulings on XRP ETF filings, including Nasdaq’s CoinShares application, now expected in October, increasing regulatory uncertainty.
- A recent security evaluation placed XRP Ledger lowest out of 15 blockchains, sparking concerns about network security and adding to bearish sentiment.
Price Movement Summary
- XRP declined 3.1% over the 24-hour period ending August 22, sliding from $2.89 to $2.80.
- The token traded within a $0.12 range (4.25% volatility), between a high of $2.92 and a low of $2.80.
- The most notable move was a rejection at $2.92 on August 21 at 19:00 UTC on volume of 69.1 million, marking a strong resistance level.
- In the final trading hour on August 22, XRP dropped 2.5% from $2.82 to $2.80 on volume of 7.2 million, confirming bearish momentum.
- Support was observed near $2.80–$2.85, although buying pressure waned with repeated retests.
Technical Indicators
- Resistance solidified at $2.92, supported by high volume rejection.
- Support range between $2.80 and $2.85 remains under pressure with weakening demand.
- Volume surged to 96 million at 11:00 UTC on August 22, indicating sustained selling interest.
- A $0.12 trading range reflects concentrated volatility.
- The late-session selloff and volume spike confirm continuation of bearish trend.
What Traders Are Watching
- Whether the $2.80 support holds; a breach could lead to accelerated losses toward $2.75.
- Developments on ETF approvals due in October, which could influence institutional flows.
- Whale accumulation patterns amid rising on-chain activity, despite subdued price action.
- The $2.92–$3.00 resistance zone as a critical breakout level for bullish reversal potential.
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