XRP Price Prediction: 63 million Whale dumping incoming, bargain buying pushing the Rebound to 5 dollars?

A massive transfer of XRP worth $63 million flowing into the exchange has caused market turbulence, but smart money has chosen to enter heavily at the $2 price level. Despite the fluctuations caused by Whale dumping, XRP still rose by 1.6% to $2.50 within 24 hours, with analysts predicting a breakthrough of $5 before the end of the year.

63 million USD Whale transfer attracts market attention

Last week, during a period of intense fluctuations in the crypto market, a large transfer of XRP amounting to 63 million USD suddenly flowed into mainstream exchanges. This massive capital movement immediately alerted market participants. In traditional understanding, the influx of whale-level funds into exchanges is usually interpreted as a signal of impending selling, often triggering a panic selling wave among retail investors.

However, the market reaction this time was unexpected. Although there was indeed a price correction in the short term, buying pressure quickly emerged, forming strong support at the key price level of $2. Data shows that a large number of investors chose to actively enter the market in this price range, viewing the correction as a rare buying opportunity rather than a signal to flee. This “when others are fearful, I am greedy” strategy reflects the optimistic outlook of experienced investors on the medium to long-term prospects of XRP.

In the past 24 hours, the price of XRP has increased by 1.6% to $2.50, and the trading volume has maintained around 4% of the total circulating market cap. Although this trading volume level is not particularly high, the stable trading amount indicates that the market has not experienced panic selling, and it may instead suggest that bullish momentum is quietly accumulating. More notably, despite fluctuations in the spot market, institutional investors' positions have shown remarkable stability.

ETF holdings stability reveals institutional confidence

The recently launched REX-Osprey XRP ETF (XRPR) manages XRP assets totaling over 90 million USD, remaining basically unchanged from last week's asset size. This data conveys an important signal: institutional investors have not changed their allocation strategies due to short-term fluctuations; instead, they have chosen to maintain their existing positions and may even increase their holdings at lower prices.

From on-chain data analysis, the so-called “diamond hands” holders clearly took advantage of last week's price correction to increase their XRP positions at more attractive prices. This means that this isolated large exchange transfer event does not represent a fundamental shift in overall market sentiment. On the contrary, the steadfast holding attitude of smart money and institutional investors provides a solid foundation for the bullish narrative in XRP price predictions.

Technical analysis points to a strong rebound outlook

(Source: Trading View)

From the perspective of technical analysis on the daily chart, XRP found support at a key trend line right as it touched the $2 level and successfully rebounded. This trend line has played a supportive role multiple times over the past few weeks, and its technical significance is evident. More notably, this rebound was accompanied by a trading volume significantly above average, and this “price up, volume up” healthy pattern reinforces the credibility of the bullish price prediction for XRP in the short term.

The performance of the Relative Strength Index (RSI) also provides a positive signal. When the price fell to around $2, the RSI briefly reached the oversold area, and then quickly rebounded as the price climbed to $2.50. This recovery from the oversold condition usually indicates that the selling pressure has been fully released, and the buying power begins to take dominance.

However, it must be pointed out that the current trading price of XRP is still below the 200-day Exponential Moving Average (EMA). This long-term moving average is regarded as an important indicator for distinguishing between bullish and bearish trends, and only a successful breakthrough and stabilization above it can confirm the establishment of a medium to long-term upward trend.

Key Price Targets and Breakout Paths

Based on the current technical structure, analysts have set multiple key target levels for the XRP price forecast. Firstly, if the bulls can drive the price to break through the resistance level of $2.70, it will open the path for a return to the $3 round figure. This price level holds significant psychological importance, and successfully standing above $3 will greatly boost market confidence, attracting more funds to enter.

Looking further, if the positive momentum continues to accelerate and successfully breaks through 3.50 USD, then the target of XRP reaching above 5 USD by the end of the year becomes quite reasonable. This prediction is not unfounded, but is based on the three driving forces of technical breakthroughs, improved fundamentals, and a rebound in market sentiment.

Of course, investors also need to be aware of the risks. If the price fails to hold the $2 support level and breaks below the trend line, it could trigger a deeper adjustment. However, based on the current market structure and participant behavior, the probability of this scenario occurring is relatively low.

Ripple ecosystem development injects long-term momentum

The support for XRP price predictions is not only based on short-term technical factors, but more importantly, on the continuous development of the Ripple ecosystem and improvements in the regulatory environment. Recently, Ripple has made significant progress in regulatory matters, and the legal disputes with U.S. regulatory agencies have become clearer. The elimination of regulatory uncertainty has cleared obstacles for the long-term development of XRP.

Ripple has recently been heavily investing in ecosystem construction, continuously expanding its cross-border payment network, and establishing partnerships with various financial institutions worldwide. These efforts are transforming XRP from a mere speculative target into a digital asset with actual application value. As more financial institutions adopt RippleNet for cross-border settlements, the real demand for XRP will continue to grow, providing fundamental support for its price.

In addition, institutional investors' interest in XRP is also heating up. The launch of ETF products provides a compliant investment channel for traditional funds. With the deepening of market education and the improvement of regulatory frameworks, it is expected that more institutional funds will be allocated to XRP, which will bring long-term stable buying power to the price.