As XRP experiences sustained short-term losses, whale investment trends indicate confidence in the token as it seeks to reclaim the $3 resistance.
Specifically, as XRP hovers near the crucial $2 support level, whales have taken advantage of the ongoing dip, accumulating 540 million XRP, according to data from on-chain analytics platform Santiment, shared by Ali Martinez in an X post on February 7.
Historically, such concentrated whale purchases have preceded notable price rebounds for XRP. This accumulation could act as a catalyst, driving XRP to new heights in pursuing a record price above $3.
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For XRP to reclaim the $3 level, favorable market conditions and a broader cryptocurrency sector rally will be required.
Notably, the recent XRP sell-off coincided with overall market sentiment, as investors turned pessimistic amid escalating trade tensions following President Donald Trump’s new tariffs on goods from Canada, Mexico, and China.
Most importantly, XRP’s price depends on regulatory developments, with the ongoing Ripple vs. Securities and Exchange Commission (SEC) case remaining a key factor. There is anticipation that the new SEC administration could either dismiss the legal matter or reach a settlement favorable to the blockchain firm.
What next for XRP’s price
Regarding XRP’s price trajectory, analysis by pseudonymous cryptocurrency analyst Egrag Crypto suggested that while there is room for further downside, the overall technical outlook remains bullish.
In a February 8 X post, the analyst highlighted that XRP is trading within a tight range defined by key Fibonacci retracement levels.
The token currently fluctuates between Fib 0.5 at $2.45 and Fib 0.382 at $2.27, with occasional wicks extending to Fib 0.618 at $2.65 and Fib 0.236 at $2.06. This range points to a delicate balance between bullish and bearish forces, creating the potential for a breakout or breakdown.
The expert emphasized that a daily close above the 21-day exponential moving average (EMA), at $2.70, is crucial as it represents dynamic resistance. Additionally, a strong daily close above Fib 0.702 at $2.80 could set the stage for further upward movement.
Support and resistance levels remain clear, with XRP’s lower range between $2.27 and $2.45 and the broader range from $2.06 to $2.65. However, he noted that a decisive close below $1.77 would give the bears control.
On the other hand, Finbold’s artificial intelligence (AI) tool forecasts an upside for XRP in the coming weeks. Leveraging several AI models, the tool predicts an average target of $2.77, an increase of 16.04% by the end of February.
The most optimistic outlook comes from ChatGPT-4o, forecasting XRP to hit $3.20, an upside of 33.89% driven by strong technical signals, such as the SMA50 staying above the SMA200 and a recent golden cross.
ChatGPT-4o Mini offered a more modest target of $2.50, citing positive market sentiment and macroeconomic factors. Meanwhile, Grok 2 Vision anticipates XRP reaching $2.62, representing a 9.62% gain.
XRP price analysis
At press time, XRP was trading at $2.39, dropping over 3% on the daily chart. Over the past seven days, the token has declined by almost 20%.
Overall, XRP is exhibiting short-term bearish sentiment, given that it is currently trading below the 50-day simple moving average (SMA) at $2.59.
However, XRP’s prospects remain positive long-term, with the 200-day SMA at $1.29, indicating a stronger support level. Additionally, the relative strength index (RSI) of 37.88 suggests oversold conditions, which could signal a rebound if downward momentum eases.
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