XRP’s price might witness a surge of 45% as major investors are acquiring more tokens and optimism about ETF approvals counters growing fears within the retail market.

Key takeaways:

• Data from Santiment indicates increasing fear among XRP traders, a trend reminiscent of a prior market rebound of 125%.
• XRP’s recent breakout targets a price of $4.29, while significant whale acquisitions bolster a positive outlook.

XRP is experiencing a notable drop in confidence from retail traders. This fear is becoming increasingly palpable, mirroring sentiments last observed during the downturn prompted by President Donald Trump’s tariffs in April.

Will XRP’s price Collapse?

Over the past two days, the ratio of bullish versus bearish sentiments for XRP has dipped below 1.0, indicating a rise in negative sentiment on social media, as reported by Santiment.

XRP’s bullish-to-bearish ratio vs. price. Source: Santiment

Santiment interprets this wave of “retail FUD” (Fear, Uncertainty, and Doubt) as a potentially favorable signal.

Historically, XRP’s market has reacted positively to declines in trader sentiment. In April, following a dip of over 25%, the coin surged more than 125%, indicating market movements often defy retail expectations.

In simpler terms, when impatient traders sold near local lows, stronger market players seized the opportunity to acquire tokens, alleviating bearish pressures. Should historical patterns repeat, XRP may see a breakout opportunity rather than a crash.

Major Addresses Accumulating XRP

Metrics indicating retail and whale activity lend support to a bullish outlook.

Specifically, the supply of XRP held by entities with over 100 tokens has consistently increased amid recent price stabilization, according to data from Glassnode.

XRP supply held by addresses with 10-to-100K-plus token balance. Source: Glassnode

XRP traders are displaying resilience as broader financial markets recover against a weakening US dollar and an ongoing government shutdown. Growing hopes around potential SEC approval of XRP ETFs also help counter social media skepticism, suggesting robust on-chain and institutional confidence remains strong.

XRP’s Symmetrical Triangle Suggests Potential 45% Rally

From a technical perspective, XRP is currently at a pivotal breakout stage within a symmetrical triangle pattern.

The price has pulled back slightly to retest the triangle’s upper boundary. This process is referred to as a “retest”—confirming whether former resistance can serve as support.

XRP/USD three-day price chart. Source: TradingView

A rebound from this level could signal a rally towards $4.29, approximately 45% higher than the recent prices. This target corresponds with previous bullish predictions for XRP shared earlier this month.

Conversely, a definitive break below the trendline would undermine the bullish trajectory and could lead to a more significant drop, potentially approaching $2.33.

Disclaimer: This article does not provide financial advice. Every investment carries risk, and readers should perform their own research before making financial decisions.