XRP’s Current Market Recovery and Key Support
XRP price has demonstrated notable strength, rising 2% over the last 24 hours as traders adjusted to last week’s sell-off. This recovery coincided with a significant 50 billion XRP sale by Ripple co-founder Chris Larsen, which initially contributed to the price dip. Despite these movements, the XRP price remains firmly above $3 at the time of writing. Analysts are now closely monitoring several key support levels that are crucial for the uptrend to continue.
The ability of XRP to hold above these thresholds is paramount for maintaining bullish momentum and preventing further downside. This resilience in the face of a large-scale sell-off indicates underlying strength and sustained buying interest, suggesting that the market is absorbing the increased supply without a significant breakdown in price structure. The current recovery points to a potential continuation of the upward trend, provided these critical support levels are defended by buyers.
Whale Accumulation Signals Bullish Confidence
Despite initial fears of possible future sell-offs by Chris Larsen, certain indicators strongly suggest that the XRP price may continue its uptrend. Santiment’s Supply Distribution metric provides compelling evidence of this, showing a steady rise in the supply of XRP held by entities with a 10 million to 100 million token balance. These addresses, often referred to as “whales,” now collectively own 8.31 billion XRP, marking a new monthly high.
This substantial accumulation represents 14% of the total XRP circulating supply. In other words, whales did not liquidate their positions during last week’s drop to $2.95; instead, they actively accumulated XRP, indicating that the majority of these large holders remain bullish on the asset’s prospects. More importantly, this sustained accumulation by large entities helps to reduce selling pressure and effectively creates a price floor, which in turn encourages smaller retail investors to follow suit and enter the market, further bolstering demand.
XRP Ledger Network Growth and Demand Spike
Beyond price action and whale movements, the XRP Ledger’s network growth remains robust, signalling elevated demand for the asset. Data indicates a significant spike in the creation of new wallets on the XRPL, which peaked around 11,000 on July 18 and has since maintained a relatively high average of 7,500 new addresses per day. This consistent growth in network participants reflects increasing adoption and utility of the XRP Ledger, indicating that more users are actively engaging with the ecosystem.
Santiment further commented on this trend, stating, “XRP climbs back above $3.25 as it gains against Bitcoin once again. Network growth on the ledger is maintaining high levels.” The fact that XRP has gained over 30% against Bitcoin (BTC) in the last 30 days further underscores its relative strength and growing demand. High network growth is a fundamental indicator of a healthy and expanding ecosystem, often preceding significant price appreciation as more users join and utilise the network.
Key Price Levels to Watch for the $4 Target
Several market analysts are confidently predicting that XRP will revisit its multi-year highs of $3.66 and potentially climb even higher, with a $4 target in sight. However, they emphasise that several key support levels must be successfully defended first. Data from Cointelegraph Markets Pro and TradingView shows that the XRP price notably bounced off a critical demand zone above $3 on June 25, after sweeping around the $2.95 level.
Trader and analyst Dom highlighted that this pullback “wiped out nearly 30% of all open interest on XRP (1.3B),” suggesting a healthy deleveraging of the market. He added that a drop down to the $2.80s would be the lowest acceptable level before the bullish structure becomes questionable. The $2.95 local level is particularly significant as it coincides with the monthly volume-weighted average price (VWAP) and the monthly rolling volume-weighted average price (RVWAP), marking it as a strong area of support that must hold for the uptrend to continue towards the ambitious $4 target.
Technical Analysis and Bullish Confirmation
Further technical analysis reinforces the bullish outlook for XRP. Fellow analyst CasiTrades emphasised that XRP’s “critical support” remains at $3, underscoring its importance. He added that if trading volume begins to rise and price decisively breaks the $3.30 resistance level, where the 50-period Simple Moving Average (SMA) sits, “we could see fresh highs quickly!” CasiTrades also noted that the first Wave 3 target, based on Elliott Wave analysis, sits near $3.82, which aligns with the 2.618 Fibonacci extension, indicating a strong potential for upward movement.
Pseudonymous analyst XForceGlobal echoed this sentiment, stating that “XRP is getting primed for $4 very soon,” also based on Elliott Wave analysis. He believes that the market is now likely in “the most profitable phase: wave ③.” These various technical indicators and patterns, combined with the underlying whale accumulation and network growth, provide strong bullish confirmation for XRP’s potential to reach and surpass the $4 mark in the near future.
XRP’s Next Move: Analysts Predict $4 Driven by Strong Signals
The consensus among several prominent analysts points towards a $4 XRP price in the near future, driven by a combination of strong technicals and positive market sentiment. Veteran trader Peter Brandt, for instance, has stated that XRP had formed a “highly rare continuation compound fulcrum” pattern, which could potentially propel the price to $4.47. This specific chart pattern is known for its strong bullish implications.
Other analysts consistently cite key factors as the likely drivers for XRP price to reach $4 or higher. These include the sustained whale accumulation, which reduces selling pressure and creates a price floor; the robust technical indicators and patterns observed on the charts, signalling strong upward momentum; and the overall positive market sentiment surrounding XRP, fueled by its growing network utility and its performance against Bitcoin. The confluence of these factors creates a compelling case for a significant price appreciation for XRP in the short to medium term.
XRP Enters “Most Profitable Phase” Wave 3
According to pseudonymous analyst XForceGlobal, XRP is now likely in its “most profitable phase: wave ③,” based on Elliott Wave analysis. This phase is typically characterised by strong, sustained price increases and robust trading volume, offering significant opportunities for investors. The combination of sustained whale accumulation, strong network growth, and clear bullish technical signals paints an optimistic picture for XRP’s future.
The ability of XRP to hold above key support levels and break through resistance will be crucial for confirming this trajectory. While the market remains dynamic and subject to various influences, the current indicators suggest a favourable environment for XRP to continue its upward momentum and potentially reach new all-time highs, including the $4 target. Investors and traders will be closely monitoring these developments, aiming to capitalise on what analysts believe could be a highly profitable period for the asset.
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