The crypto market took a beating last week, with XRP caught in the crosshairs of a broader selloff that wiped out many leveraged traders. While smaller investors were forced to close positions, whales saw an opportunity – scooping up XRP tokens by the millions at discounted prices.
Looking at the charts, some analysts believe the worst may be over, with technical signals hinting at a potential recovery ahead. Randy from Late Night Grind Crypto noted that the sharp decline forced many overleveraged traders out of their positions.
Retail traders exited while large investors seized the opportunity, purchasing 540 million XRP after the drop to $1.90. According to Randy, whale accumulation often indicates confidence in a future price recovery, reinforcing a long-term bullish outlook.
Bitcoin’s price remained relatively stable, hovering around $97,000 in what Randy described as a consolidation phase. Technical indicators suggest a potential move toward $100,000 – $102,000 before encountering resistance.
Since XRP typically follows Bitcoin’s price trends, Randy suggested that a BTC rally could provide bullish momentum for XRP, helping it break key resistance levels.
What you'll learn 👉
XRP Price Movement & Technical Outlook
At the time of analysis, XRP was trading at $2.42, currently about $2.49, fluctuating between $2.20 and $2.50. This range is forming a bull flag pattern, a historically bullish indicator.
Market positioning also shows a decline in leveraged trades, with open interest in futures dropping by 37%. This suggests traders are reducing risk following recent liquidations, potentially creating a more stable foundation for future gains.
For XRP to push toward its all-time high of $3.84, it must break and hold above the $2.59 resistance level. Randy highlighted that some analysts predict an eventual target around the ATH, with long-term projections eyeing resistance levels at $8.40 and a speculative peak at $48.
Read also: Solana (SOL) Price Correction Likely, Expert Warns—Here’s Why
XRP ETF Approval & Regulatory Developments
The potential approval of an XRP ETF remains a key topic of discussion. Attorney Jeremy Hogan suggested that regulatory clearance could arrive by the end of 2024, potentially acting as a major catalyst for XRP’s price.
Regulatory sentiment is also shifting, with more crypto-friendly officials now influencing policy decisions at the SEC. A resolution to Ripple’s ongoing legal battle with the agency could further strengthen XRP’s market standing.
Institutional interest in crypto remains strong, as reflected in MicroStrategy’s recent $748 million Bitcoin acquisition. The firm, now rebranded as “Strategy,” holds 479,000 BTC, reinforcing institutional confidence in digital assets.
If an XRP ETF gains approval, similar institutional demand could drive prices higher, as was the case with Bitcoin following its ETF launch.
Will XRP Drop Before a Rally?
While many analysts remain optimistic, one trader predicts a 52% crash to $1.16 before a strong recovery. However, Randy dismissed this scenario, arguing that such a decline would require a major Bitcoin sell-off, which currently seems unlikely.
With whales accumulating, technical indicators forming bullish patterns, and regulatory clarity approaching, Randy emphasized that XRP’s price trajectory remains a focal point for investors.
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