The price of XRP is currently at a significant juncture, as indicated by insights from a leading analyst. A weekly close above $1.95 could mark a pivotal shift for the cryptocurrency, potentially allowing it to advance toward $2.70. Since July, Ripple has faced mounting pressure, but recent data suggests that sell pressure may be diminishing.
Notably, on-chain metrics reveal a positive trend, with inflows into the XRP exchange-traded fund (ETF) continuing to grow. This trend is highlighted by 18 consecutive days of inflows, suggesting that the market may be experiencing a shift in sentiment.
The analyst”s assessment indicates that XRP is approaching a crucial point on its weekly chart, currently trading around $1.86. This position is below a long-term descending trendline, and also beneath both the 8-week and 21-week exponential moving averages (EMAs), indicating a general bearish structure for the time being.
The focus remains on the $1.95 resistance level, which aligns with the 0.5 Fibonacci retracement and the 89-week EMA — a crucial support level throughout the year. This week”s close is particularly important; failing to close above $1.95 could exert significant pressure on buyers, possibly leading to a decline toward $1.60, which coincides with the 0.618 Fibonacci retracement level. This level represents the next critical support for XRP.
Conversely, if buyers manage to break above $1.95, the outlook could improve considerably. A reclaiming of this resistance may attract new demand, potentially driving the price towards $2.30, with $2.70 becoming a realistic target if upward momentum continues to build.
As of the latest updates, the performance of XRP hinges on maintaining the $1.95 threshold. A failure to hold this level would elevate the risk of a more profound correction.
In addition to the price action, the inflows into XRP ETFs have been remarkably strong. Since their introduction last month, these ETFs have not recorded any outflows, with net inflows totaling $1.13 billion. The total assets under management have risen to $1.25 billion, marking a robust interest in the asset.
Recent data indicates that Canary Capital”s XRP ETF leads with $384 million in inflows, outpacing other ETFs such as those from Bitwise and Grayscale. Institutional movements also reflect a growing confidence in the asset, with funds shifting from Bitcoin and Ethereum ETFs into XRP, further signaling a positive outlook.
Moreover, the reserves of XRP on Binance have declined to 2.6 billion, the lowest level since July 2024, suggesting that selling pressure may be subsiding as investors withdraw their holdings from exchanges. This decline typically indicates that investors are moving their assets into private wallets, thereby tightening the available supply in the market.
In summary, the current sentiment among buyers is to maintain a weekly close above $1.95 for XRP. The upcoming period is crucial, as the cryptocurrency aims to stabilize within the $1.80 to $1.90 range, with the potential for a bullish reversal evident in the Relative Strength Index, which indicates room for upward movement.
