Despite the weak course of the XRP price, some analysts think that the possibility of a long-term rise remains on the table. Although the loss of confidence is prominent due to the horizontal movement that lasts for months in the market, evaluations indicate that the situation may change if critical support levels are maintained.
Prominent support zone for XRP
Crypto analyst Crypto Tolga argues that the increasing pessimism around XRP may pave the way for a strong breakout in the long term. According to Tolga, this cycle is different from previous periods and the $0.65 to $0.70 range is the most critical support zone for XRP.
Crypto Tolga predicts that XRP could be poised for one of the strongest uptrends if the $0.65 to $0.70 range remains the main bottom area of this cycle.
According to the analyst, as long as this zone remains valid, the $18 target may come to the agenda again in the long term. Based on XRP’s price of approximately $1.06, $18 represents an increase of approximately 1,600 percent from the current level.
Although this prediction seems quite ambitious, the expectation is based on improvement in market conditions, increase in institutional adoption and expansion in the XRP Ledger ecosystem. XRP Ledger is known as an open source blockchain infrastructure used for payments and asset transfers, connected to the Ripple ecosystem.
Past price movements and market structure
XRP’s past price behavior is also effective in the positive approach of analysts. The asset had previously shown sharp increases following long periods of compression. For this reason, some investors evaluate that a similar breakout may occur again.
Mini dictionary: Open position refers to the total amount of positions that have not yet been closed in futures contracts. On-chain activity includes transfer, wallet interaction, and network usage data on the blockchain.
Latest market data are also among the factors that support cautious optimism. While the significant decline in the open position in futures transactions revealed that investors using leverage left the market, XRP nevertheless managed to stay above the $1.00 level, which is considered psychologically important.
$1.10 level could be decisive in the short term
On the other hand, the increase in on-chain activity indicates that demand is supported mostly by spot purchases. Many analysts find this structure, in which direct purchases come to the fore instead of speculative leverage, to be healthier and more sustainable.
In order for optimism in the market to gain strength, XRP must first overcome the $1.10 resistance; A clear break above this level could re-accelerate the price movement.
In the short term, the $1.10 level is viewed as the most important technical threshold. As long as this barrier is not overcome, XRP is expected to move within a certain band and buyers will try to gather strength to attempt a new rise. On the other hand, if the $0.65 to $0.70 region is maintained and a new upward trend begins in the general cryptocurrency market, analysts think that a much stronger movement area may occur in the long term.
