XRP Signals Breakout From Bullish Channel

What to Know:

• XRP has declined 34% this month but a key support level may signal a potential entry point for institutional investors.
• Macro factors and technical analysis suggest a possible trend reversal for XRP.
• The $0.85–$0.95 range is critical for XRP, potentially influencing liquidity and future market movements.

XRP is currently trading around $1.37, reflecting a nearly 15% decrease over the past week and a 33% drop in the last month. This downturn has sparked discussions among analysts about potential reversal points. One analyst suggests that a long-term ascending channel, with support around $0.85–$0.95, could represent an opportune entry for institutional investors.

Key Support Level at $0.85–$0.95

A prominent analyst has identified a critical support zone for XRP between $0.85 and $0.95, based on a monthly chart analysis. This level represents the lower boundary of an ascending channel that has been tested over the past nine years. The analyst suggests this area could attract “smart money,” indicating a potential resurgence of institutional interest.

Volume Analysis Indicates Untapped Potential

The analyst notes that current trading volumes are significantly lower compared to the substantial spike observed between November 2020 and April 2021. This suggests that the 2024 rally, which saw XRP rise above $2, was primarily driven by whales and certain funds, rather than large-scale institutional inflows. The absence of significant institutional volume implies substantial untapped potential for XRP.

Derivatives Market Shows Cooling Speculation

Recent data from the derivatives market supports the idea that speculative activity around XRP is waning. Over the past month, open interest in XRP futures has decreased on major exchanges like Bybit, Binance, and Kraken. This contraction indicates that traders are closing leveraged positions, suggesting a transitional phase before a new trend emerges.

Positive Macroeconomic Factors Underpin Potential Growth

The analyst’s bullish outlook is not solely based on technical analysis; several macroeconomic factors also play a crucial role. These include increased regulatory clarity following the resolution of Ripple’s lawsuit with the SEC, the development and expansion of RLUSD, and the integration of Ripple’s technology by institutional players. The increasing tokenization narrative and the establishment of institutional infrastructure further bolster the positive outlook.

Historical Performance Suggests Strong Rebound Potential

XRP has demonstrated a history of sharp recoveries following periods of decline. For instance, during the 2018 bear market, XRP traded near $0.30 for several months before rallying to $1.70 in April 2021. Similarly, after bottoming around $0.35 in the spring of 2022, XRP remained range-bound until November 2024, eventually climbing above $2 and reaching an all-time high of $3.65 in July 2025. This historical volatility suggests a strong potential for future rebounds.

In conclusion, while XRP has experienced a notable downturn recently, technical analysis, derivatives data, and positive macroeconomic factors suggest a potential reversal. The $0.85–$0.95 support level is critical, and increased institutional participation could drive significant future growth.

Related: XRP Activity Signals Behind-the-Scenes Moves

Source: Original article