Ripple (XRP), Recovers Key Support Line… Will it Reach $1.50 This Time?

▲ Ripple (XRP) ©

XRP (Ripple) has successfully rebounded by reclaiming its key support line, but whether this recovery will lead to a full-fledged uptrend remains uncertain, with conflicting signals emerging. While investor sentiment on Wall Street has contracted, on-chain data shows accumulation by whale investors, simultaneously raising the possibility of XRP rebounding to $1.50 and the potential for a re-decline to $0.80.

According to investment media FXEmpire on July 7 (local time), XRP has risen approximately 8% over the past 7 days after a strong rebound from $1.03. Its 24-hour trading volume also surged by 62% to $1.8 billion, and the price is trading above $1.15, having recovered the key support level of $1.13, which had been breached by recent selling pressure. The media analyzed that buying pressure is technically strengthening, and if further upside continues, a short squeeze (buying pressure occurring to liquidate or cover short positions) could occur, potentially expanding the gains.

However, institutional investor sentiment has weakened. According to SoSoValue's aggregation, the net inflow into XRP spot ETFs decreased by 55% from $132 million in May to $59 million in June. The media explained that this is a sign that institutional investors' interest has actually decreased even during a period of significant price decline.

In contrast, on-chain data showed a divergent trend. According to Santiment data, the daily active addresses on the XRP Ledger surged to their highest level since February. At that time, XRP had risen from $1.47 to $1.54. The media analyzed that the recent surge in active addresses at the $1.03 low suggests that whale investors may have identified XRP as an undervalued asset and started accumulating it. However, it added that the possibility of these movements being a temporary 'fakeout' due to large whale transactions rather than natural buying pressure from general investors cannot be ruled out.

Technically, XRP's recovery of its previous support level at $1.13 was considered a positive signal. The Relative Strength Index (RSI) broke above its signal line, indicating improved momentum, but the media diagnosed that the RSI needs to rise above 60 to confirm a shift to an uptrend. The baseline scenario is a retest of the previous resistance at $1.32, and if this rebound is not merely a technical bounce, it could rise to $1.50, where the 200-day Exponential Moving Average (EMA) is located. This represents an upside potential of approximately 33% from the current price.

Conversely, if XRP falls below the $1.13 support line again, the possibility of a decline to the existing bearish target of $0.80 remains. The media assessed that, for now, if the price drops below $1.13, a sell strategy targeting $0.80 with a stop-loss above $1.13 offers the most favorable risk-to-reward ratio.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*