XRP is once again at a crossroads. After a short-lived rally that took the token close to $1.70, the cryptocurrency has retreated to around $1.41, currently up 1.71% over the past 24 hours. The pullback has erased part of the recent gains and, over the past week, XRP is down nearly 4%, prompting traders and analysts to question whether this is merely a dip before another leg higher or the start of a deeper correction.
Despite the short-term weakness, a number of prominent crypto analysts believe the move lower could be a healthy reset. The recurring theme is that XRP appears to be repeating its 2024 market structure, which eventually preceded a massive price surge. If history rhymes, the digital asset may be preparing for another explosive move beyond its current trading range.
Analyst Sees a 2024 Repeat
Market analyst SeffafNet stirred the conversation this week with a bold observation: XRP has repeatedly followed the exact same pattern as it did in 2024. In a social media post accompanied by side-by-side price charts, the analyst argued that the current consolidation phase mirrors the quiet accumulation that unfolded before XRP broke to the upside in the previous cycle.
According to SeffafNet, if the historical pattern plays out again, XRP must clear a series of key price milestones before potentially reaching $3.40. That level is particularly notable because it sits near the token's all-time high, providing a significant psychological and technical barrier. A successful move toward $3.40 would represent not just a recovery but a substantial breakout from current levels, and some observers have gone as far as suggesting that a 650% surge could materialize if the full pattern extends, as implied by the headline of the original report.
The 2024 comparison is rooted in observable market dynamics. During that period, XRP spent months in a range, building a strong base of support while repeatedly testing resistance. Eventually, a change in macroeconomic conditions, combined with positive crypto-specific catalysts, helped propel the token into a sharp rally. SeffafNet believes the current price action is a near-identical replay, with bulls not yet ready to abandon the core support zones.
The Key Support Zone
Other analysts have pinpointed a specific price range that will likely decide the next directional move. Analyst Diana, who runs the account @InvestWithD, has identified approximately $1.38 as the most important level for XRP amid the present correction. Her technical model suggests that the token bounced off a Fibonacci support area, and she warns that losing this level would invalidate the current bullish setup.
Diana's analysis relies on Elliott Wave theory, a method that attempts to predict market trends by identifying repeating wave structures. She sees the current pullback as part of a corrective phase, with $1.88 representing the next major target on the upside. Beyond that, she has highlighted $4.11 and $7.07 as higher targets, assuming the projected wave structure develops without a breakdown. These targets may seem distant, but they align with the pattern's historical amplification.
Diana stressed that the $1.38 line is not just a random number. It has served as both support and resistance in prior trading sessions, making it a conflict zone where the market's future bias could be determined. She told her followers that watching this line is critical because a decisive move below it could trigger stop-loss orders and lead to a cascade of selling, whereas a successful defense could bring renewed buying pressure.
On her four-hour chart, Diana also observed improving momentum. XRP's Relative Strength Index (RSI) had recovered to roughly 47.5 and moved back above its signal line. This technical development often suggests that downside momentum is fading and that buying interest may be returning, although the indicator has not yet entered the overbought territory that would signal an immediate breakout.
Confluence of Demand At $1.35-$1.38
The $1.35-$1.38 region is gaining weight as an accumulation zone, not just from technical analysis but also from on-chain and derivatives data. Another respected analyst, Ali Martinez, has highlighted this price range as a major demand area. Martinez noted that around 3.2 billion XRP were previously traded within that range, making it a dense supply-and-demand zone where many market participants had opened positions.
This kind of on-chain volume often acts as a magnet for price movement. If XRP remains above this range, holders who bought earlier may feel inclined to add positions, while sellers who previously unloaded their tokens may become reluctant to re-enter and push prices lower. Conversely, a sustained break below this zone could turn it into resistance and complicate any recovery.
Martinez emphasized that XRP entered a 20% correction after rallying 71.8% from roughly $0.988 to $1.698 within a short span. In his view, corrections of that magnitude are not unusual after such a strong advance, and they can actually provide a healthier foundation for the next move upward. If the bulls can defend the $1.35-$1.38 support, the path of least resistance may remain to the upside.
He also outlined the resistance levels that matter above the current price. According to Martinez, XRP will first need to reclaim $1.60 and then clear $1.68 before targeting the more consequential $1.86 level. A decisive break above $1.86, in his analysis, could open the way toward $2.19. These are not all-time highs, but they represent regions where previous price congestion could cause sideways movement or temporary pullbacks.
On-Chain Data Reinforces the Picture
Additional on-chain metrics from Santiment further cement the significance of this support zone. The data provider shows that more than 4.8 billion XRP were previously acquired between $1.31 and $1.38. This large cluster of acquisitions suggests that a substantial number of investors have a vested interest in seeing the price hold above that level. In the event of a dip into that range, buyers may step in aggressively, knowing exactly where the next wave of accumulation took place earlier.
Such on-chain data is increasingly used by analysts to supplement traditional technical analysis because it reflects actual market behavior rather than just the interpretation of price charts. When multiple forms of analysis converge on the same price level, it tends to carry greater significance. In this case, the $1.35-$1.38 area has become a rare confluence point between order flow, trading volume, and technical indicators.
The broader on-chain environment also suggests accumulation rather than distribution. While the token has corrected from its highs, large holders have not been dumping their supplies in panic. Instead, the current trading patterns imply that many market participants view the dip as a buying opportunity, especially in light of the positive regulatory and institutional backdrop that has driven XRP demand over the past year.
Institutional Interest Remains Firm
Beyond retail activity, institutional investors are also showing continued confidence in XRP. Data from the United States spot XRP ETF market reveals approximately $73.2 million in net inflows during the week of August 24. During that same period, about $105 million worth of XRP was purchased through these funds, indicating robust demand from professional investors who prefer regulated exposure to the cryptocurrency.
These ETF inflows matter because they offer a glimpse into the larger capital flows entering the asset. Institutional money tends to be more stable than retail flows, and sustained inflows can help create a price floor during corrections. Moreover, the growing availability of XRP investment vehicles has broadened the investor base, reducing the likelihood of extreme sell-offs triggered by a single region or exchange.
Another reason institutions are paying closer attention is the improving regulatory landscape. Ripple, the company most closely associated with XRP, has achieved legal clarity in several jurisdictions over the past few years, and that clarity has eased the concerns of compliance teams at major financial institutions. XRP's utility as a bridge currency for cross-border payments continues to drive partnerships and potential real-world applications, giving long-term investors confidence that the token has value beyond speculation.
What Must Happen Next?
For XRP to replicate the optimistic scenario laid out by multiple analysts, the first step is defending the support range near $1.35-$1.38. A daily close below this zone would likely invalidate the current bullish projections and force a reassessment of the token's short-term trajectory. On the other hand, if buyers defend the area and push prices above $1.60, the immediate risk of a deeper correction would subside.
The next test would be reclaiming the recent high around $1.70. After that, focused attention will shift to the resistance cluster at $1.86. Cracking that barrier would signal a resumption of the broader uptrend, allowing traders to set their sights on $2.19 as the next logical target. Successive breaks above these descending resistance levels are often accompanied by increased trading volume, which confirms the conviction behind the move.
Analysts like Diana have even greater ambitions. Their wave counts suggest that XRP could eventually target $4.11 and $7.07 if the bullish pattern extends fully. While those levels may seem far removed from the current $1.41 trading price, they are still lower than the 650% surge implied by some optimistic projections. Extreme price targets in crypto markets are not uncommon, especially when historical chart patterns and institutional adoption align.
The current correction is also taking place against a backdrop of improving technical momentum. Indicators such as the RSI have begun to flatten and turn upward from oversold conditions, hinting that selling pressure is nearing exhaustion. If XRP can post a series of higher lows over the coming days, it would suggest that the pullback is losing strength and that accumulation is taking place.
Market participants are also watching the broader cryptocurrency environment for cues. Bitcoin and Ethereum will likely influence sentiment across the sector, and a strong performance in the major coins could provide the tailwind XRP needs to initiate a breakout. Conversely, a sudden risk-off pulse in traditional markets could delay the bullish setup. Yet, for now, the structure remains tilted in favor of the bulls as long as the critical support holds.
At press time, XRP was trading at $1.41, up 1.71% over the past 24 hours.
Source:ZyCrypto News