XRP's Journey Towards $7: The Critical Support Level to Watch
XRP is currently maintaining a price above $2, with analysts forecasting an increase towards $7 if significant support holds.
XRP is currently trading above $2.00, a significant price point that has historically garnered trader attention. Fluctuations within this area have prompted notable reactions in the past, and the current focus is whether this support will persist.
XRP Trades at Significant Structural Support
As of now, XRP is hovering around $2.20, showcasing a 7% increase for the day and approximately 3% over the week. Recent data indicates a trading range between $2.04 and $2.28. The analyst Ali Martinez has observed that the asset is developing a right-angled ascending broadening wedge, characterized by a flat support at approximately $2 and an expanding upper limit.
Best case: $XRP is forming an ascending broadening wedge. But the crucial point lies in maintaining the $2 support. View Tweet
Should the support hold firm, a price escalation towards $6.50 to $7.20 may become feasible based on prior trends in similar circumstances. Conversely, a breach of this support could compel traders to reassess their immediate strategies.
Per Glassnode, the $2 threshold has historically resulted in substantial realized losses for holders, estimated to be between $500 million to $1.2 billion whenever the price approaches or falls beneath this mark throughout 2025. Large sell-offs occurred in significant months like March, April, and November, suggesting that price memories play a crucial role in influencing short-term trading decisions.
Market Structure Remains Intact
Recent evaluations indicate that XRP remains above the 200 EMA on the 3-day chart, although the 50 EMA is converging towards a crossover beneath it, a potential signal of bearish patterns. Yet, Egrag Crypto pointed out that this should not be misconstrued as a definitive bear market signal, recalling similar circumstances from 2017 and 2021 which resulted in notable uptrends.
ETF Inflows Indicate Growing Demand
Interest in Ripple’s token has surged following the introduction of new ETFs. Kyle Chass茅 confirmed that XRP ETFs witnessed $164.04 million in net inflows on a single day, highlighting a robust institutional interest. Notably, Grayscale’s XRP ETF attracted $67.36 million, while Franklin Templeton鈥檚 saw inflows of $62.59 million on their respective first days.
馃毃 XRP ETF FLOWS: $XRP ETFs recorded a remarkable $164.04M inflow. View Tweet
While navigating through market volatility, these inflows highlight a solid initial response and depict increasing institutional interaction with XRP, simultaneously reinforcing its demand.
