XRP, despite 20% sharp drop, a buy wall of 4.8 billion... will it go to $2 again?

▲ XRP/ChatGPT generated image

XRP has undergone a 20% correction from its August high. However, a buy wall of 4.8 billion XRP has formed at the $1.31-$1.38 support line.

According to Benzinga on September 2 (local time), crypto analyst Ali Martinez analyzed that XRP's bullish scenario is still valid. XRP rose 71.8% from $0.988 to $1.70 in August, then underwent a 20% correction. Martinez pointed to the $1.31-$1.38 range as a key demand zone, stating that over 4.8 billion XRP were previously bought in this area.

Analysis of the hourly chart indicates a bull flag formation. Martinez suggested that a breakout could be confirmed if the hourly candle closes above $1.38. Subsequent resistance levels are $1.60, $1.68, and $1.86, in that order. Previously, approximately 2 billion XRP were traded at $1.60, and 1.98 billion XRP at $1.68. At $1.86, 3.47 billion XRP were traded, and if this price is surpassed, $2.19 is presented as the next target.

ETF funds moved counter to the price correction. According to SoSoValue, US spot XRP ETFs recorded net inflows for 11 consecutive trading days. The net inflow on September 1 alone was $14.38 million, and the cumulative net inflow since August 18 was approximately $170 million. The cumulative net inflow since launch reached $1.68 billion, with total net assets amounting to $1.44 billion.

Franklin Templeton's XRPZ led the daily net inflow with $6.63 million. Grayscale's GXRP saw $4.72 million, and Canary Capital's XRPC received $3.03 million. Martinez diagnosed that ETF purchases have not yet fully translated into price bullishness. However, he evaluated the continued buying interest even during a 20% correction as a positive signal for technical trends.

At the lower end, $1.31 was identified as the price level that would determine further correction. Analysis suggests that XRP is approaching the end of a descending triangle near $1.32, simultaneously testing the $1.30 support line and the 20-day exponential moving average at $1.31. If $1.31 breaks, the bullish support range of $1.24-$1.28 is presented as the next line of defense.

[Article Key Summary]

-XRP rose 71.8% in August then underwent a 20% correction, with a buy wall of over 4.8 billion XRP previously formed at $1.31-$1.38.

-XRP spot ETFs recorded net inflows for 11 consecutive trading days, with approximately $170 million flowing in during that period.

-If $1.38 is broken, the possibility of retesting $2 opens up, and if $1.31 is breached, $1.24-$1.28 is presented as the next support zone.

*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.*