XRP (XRP) Crashes Below $2, but Bullish Sentiment Remains

Despite the recent downturn, many analysts remain bullish on XRP's long-term potential.

XRP (XRP) price has crashed over the past few weeks, dropping from a March high of $3.02 to test the critical $2 support level. This marks an 18% decrease in value, aligning with the broader cryptocurrency market volatility. Despite the downturn, many analysts remain bullish on XRP’s long-term potential.

The price correction can be attributed to what some experts describe as a “healthy price reset” following XRP’s breakout from a seven-year symmetrical triangle structure in late 2024. Market analyst EGRAG Crypto suggests this pullback is a natural post-breakout correction.

Amidst this price action, a significant whale movement has caught investors’ attention. According to Whale Alert, a Ripple whale transferred over 167 million XRP, valued at $367 million, to an unknown wallet in a single transaction.

This large-scale transfer has sparked speculation among market participants. Some opine it's a consolidation of funds ahead of further acquisitions, while others suggest it might be an over-the-counter trade considering the massive volume.

The recent price pressure has resulted in XRP losing nearly 5% over 24 hours and approximately 20% over the past week. However, daily trading volumes have increased by 68.37%, indicating heightened market activity.

Price Rebound?

Several factors could potentially drive an XRP price rebound. Among them is the growing institutional adoption. Major financial institutions are employing Ripple ledger technology for cross-border payments. Estimates suggest that if Ripple processes just 5% of worldwide remittances, XRP could surpass its historical highs.

Another potential catalyst is regulatory clarity. The ongoing SEC Ripple lawsuit has kept many institutional investors cautious, but recent developments suggest resolution may be approaching. Ripple CEO Brad Garlinghouse has also emphasized the importance of regulatory clarity for XRP’s long-term growth.

Furthermore, technical upgrades to the Ripple network could boost adoption. Enhanced scalability, security, and integration with new financial markets would improve XRP’s utility in the financial ecosystem.

Some analysts have made bold price predictions. EGRAG Crypto suggests that if historical market cycles repeat, XRP could climb as high as $27. Analyst Dark Defender has even proposed that XRP could reach $333 if it repeats its 2017 bull run pattern.

Institutional interest in XRP seems to be heating up as weekly inflows outpace both Bitcoin and Ethereum for the fourth consecutive week. This increased interest has been attributed to the Crypto Strategic Reserve announcement and the SEC’s acknowledgment of ETF filings.

On-chain metrics also show promising signs. XRP weekly active addresses have reached a new all-time high of 1.15 million, indicating growing network participation despite the price decline.

In the short term, XRP needs to hold the $2 support level to avoid further downside. If buyers enter at this key zone, the asset could regain upward momentum. The next resistance level to watch is at $2.70 before XRP can target the $3 mark again.

The XRP community will be closely monitoring how the price reacts to the current $2 support level. Technical indicators suggest that a crossover with the 21 EMA could trigger renewed buying interest.

As market conditions evolve, XRP’s price action will likely be influenced by broader crypto market trends, regulatory developments, and institutional participation. Traders and investors should keep an eye on increased demand on major exchanges as a signal of potential recovery.