 ▲ Ripple (XRP) |
As fears of war in the Middle East send the crypto market into extreme volatility, XRP (Ripple) plunged to as low as $1.27 before staging a strong rebound, drawing intense attention from investors. Notably, indicators suggesting a potential price explosion have emerged, including a surge in capital inflows to the futures market and institutional accumulation of XRP spot ETFs, leading to analysis that levels below $1.27 represent a strong buying zone.
According to Trading News on March 1 (local time), XRP, which had tumbled below $1.27 over the weekend due to shocks stemming from Iran, rebounded on bargain buying, surpassing $1.40 intraday and currently trading around $1.35. Technically, it remains below all major moving averages, with the Moving Average Convergence Divergence (MACD) signaling strong sell pressure and the Average Directional Index (ADX) indicating continued downward momentum—classic signs of a bear market. The Relative Strength Index (RSI) is nearing oversold territory, creating a standoff between the possibility of a technical rebound and persistent downside pressure.
However, movements in the derivatives market suggest explosive momentum in the opposite direction of these bearish indicators. Over the weekend, capital inflows into XRP perpetual futures surged by 130%, with leveraged positions being aggressively built around the $1.50 resistance level. This suggests that beyond a simple rebound, if the trend breaks decisively in either direction, cascading liquidations could follow, causing an uncontrollable and significant price swing.
Particularly noteworthy is that despite extreme market fear, cumulative inflows into XRP spot ETFs have surpassed $1.2 billion, indicating steady institutional investment. At the same time, large amounts of XRP have moved from exchanges to private wallets, rapidly reducing available sell-side supply. This combination of institutional accumulation and declining circulating supply is interpreted as a powerful structural bullish signal that could drive prices higher in the mid to long term, regardless of short-term chart weakness.
Some prominent analysts, citing XRP’s multi-year chart pattern and a historical 3,500% surge, have even presented bold long-term projections of a potential rise to $50. Although Ripple periodically releases escrowed tokens, creating supply pressure, the market has firmly defended the psychological support level of $1.00, demonstrating strong resilience in absorbing additional supply.
The outlet strongly recommends maintaining a Hold strategy at the current $1.35 level, but advises investors to Accumulate without hesitation if prices retreat toward $1.27 due to potential shocks from Monday’s stock market opening. The $1.27 range is viewed as an optimal entry point, where the upside potential toward the 50-day moving average at $1.66 or the 200-day moving average at $2.27 significantly outweighs the downside risk toward $1.00, maximizing the expected return relative to risk.
*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 solely for informational purposes.*