XRP’s Critical 3-Day Candle Closes as Powell Takes the Stage

• XRP is testing its critical 3-day 21 EMA, a key level that could determine its short-term trend
• The crypto market awaits a major speech from Fed Chair Jerome Powell that could trigger extreme volatility
• An analyst warns the outcome for XRP could be a “nuke or a blast,” depending on the speech and the candle close

A crypto analyst on X, Egrag Crypto, drew attention to a critical XRP moment. Namely, a 3-day candle is nearing its close and hovering around the 21 Exponential Moving Average (EMA). A close below this level is often viewed as bearish, while a hold above signals potential strength.

They tied this technical moment to Jerome Powell (Chair of the Federal Reserve), indicating that the market could react sharply like a “nuke or a blast”, depending on how Powell’s upcoming speech goes and where XRP’s price finally closes.

The Fed’s Chair is scheduled to deliver a very important speech at the Jackson Hole Economic Policy Symposium today, focusing on the economic outlook and the Fed’s policy strategy. This is expected to be his final Jackson Hole address before his term ends in May 2026.

With low trading activity ahead of the speech, cryptocurrency markets, particularly Bitcoin and Ethereum, could be susceptible to sharp price swings. Analysts caution that 92 of the top 100 cryptocurrencies are already trading lower, indicating a widespread risk-off sentiment among investors.

Why the 21 EMA Matters for XRP

Looking back at XRP’s chart, the 21 EMA has been an important short-term trend indicator for XRP, as breaching it often increases bearish risks. For instance, in late July, XRP’s price fell below its 21 EMA on the 12-hour chart. This signaled a deeper consolidation near the CME (Chicago Mercantile Exchange) futures gap zone, a technical area where traders often watch for a sudden drop or spike.

Notably, the 4-hour chart puts XRP still within a downtrend structure, especially with pressure around the $3.06 Supertrend resistance level.

Related: XRP’s “Falling Wedge” Pattern Targets a $5.20 Rally, But Top Binance Traders Keep Selling

Currently, XRP’s price is around $2.92, which is a 6% drop compared to last week, and roughly 11% compared to last month.

At this point, if XRP closes below the 21 EMA on the 3-day timeframe, traders may interpret that as a potential shift to a more bearish stance, more so combined with whatever Powell’s speech brings.

Related: XRP Gets Buy Signal as Analyst Eyes Potential 3x Gain to $9

The Jackson Hole event is shaping up to be a make-or-break moment for financial markets, particularly cryptocurrencies. Regardless of whether he signals a move toward easing monetary policy or maintains a cautious stance, Powell’s address will likely determine crypto’s price trajectory for the rest of the year.