XRP Price Under $3: Opportunity or the End of the Rally? Analysts' Insights
The price of XRP has become a focal point of intense discussion in the cryptocurrency community, with analysts and traders alike divided on whether its current position under $3 represents a buying opportunity or the end of its rally. Some analysts are forecasting a potential drop to $1.60, while the accumulation by Korean traders and bullish wave projections hint at a long - term target as lofty as $18.
It took XRP a staggering six years to reclaim the $3 mark, a significant psychological level it last reached during the crypto market's 2017 bull run. However, macroeconomic shocks triggered by former US President Donald Trump's trade war caused XRP's price to drop below this level again earlier this week.
As of February 6, XRP's price was trading at approximately $2.40, which is about 30% lower than its record high of $3.40 set three weeks ago. Nevertheless, the Ripple - associated token is still up around 400% from its local low of roughly $0.50 in November 2024. In essence, XRP is currently in a consolidation phase following a sharp rally, as traders are eagerly waiting for further clues to determine their next market stance.
This situation has sparked widespread discussions across the crypto community about whether XRP's sideways movement indicates the end of its current upward run or a prime buying opportunity.
Will XRP Drop Another 30 - 45%?
According to the popular market analyst Credibull Crypto, XRP's price could potentially drop another 30 - 45% in the coming weeks. In his latest analysis, he suggested that XRP's price might decline towards its "local lows" within the $1.60 - 1.30 region, which is represented in green in the chart below.
Fellow analyst Nishant Bhardwaj shares the same $1.60 downside target. He pointed out that XRP must hold above the $2.50 support level to maintain its upward momentum. Bhardwaj wrote in an X post: "Strong bounce from sub $2 levels suggests demand, but bearish pressure persists. Watch $2.50. A breakdown could lead to $2.00 & $1.61 support tests."
Interestingly, further Volume Profile analysis of the $1.60 - 1.30 region reveals its significance as a high - volume area with substantial trading activity in recent months. The $1.60 level, in particular, is just 20 cents below the 200 - day exponential moving average (200 - day EMA; the blue wave) support. Overall, the $1.60 - 1.30 area is likely to act as a strong demand zone, where buyers are expected to step in.
XRP Whales, South Korean Traders Buy XRP Dip
Recent market activity has emphasized the importance of monitoring South Korean traders, who have traditionally served as a reliable indicator of retail sentiment and speculative trading trends in the crypto market. As observed in the cumulative volume delta (CVD) charts by analyst LTRD, traders on Upbit aggressively bought Bitcoin (BTC) and XRP while simultaneously selling off Ether (ETH) during the latest market correction. CVD represents the net sum of buy and sell trades.
This behavior indicates a strategic capital rotation, with South Korean investors seeking safety in BTC and XRP. What's most remarkable is the consistent accumulation of XRP, especially when compared to the persistent selling pressure on Ethereum. Even more notably, Bybit traders followed a similar trend, with XRP purchases increasing throughout the price dip.
Meanwhile, according to data from Messari, XRP whales, particularly those holding over 1 million tokens, have also been accumulating during the current price dip. This cross - exchange accumulation suggests that certain market participants view the sell - off as a prime buying opportunity, strengthening the argument that XRP remains a high - conviction asset among specific investor segments.
In addition, crypto analyst Dark Defender predicts that XRP could reach $5.85 in the short term and $18.22 in the long run based on the Elliott Wave Theory. XForceGlobal also believes that XRP is in its fourth wave on the daily chart and anticipates a final push towards the $5 - $10 range.