XRP (CRYPTO: XRP) is down 20% from its August high of $1.70, with one analyst outlining a cruicial zone as the level that determines whether $2 stays in play.
Ali Martinez posted a five-part thread on X Tuesday, laying out the bull case for XRP despite the pullback.
More than 4.8 billion XRP were previously acquired between $1.31 and $1.38, making it one of the heaviest demand zones on the chart.
On the hourly timeframe, XRP is forming a bullish flag pattern with support at that same zone. An hourly close above $1.38 confirms the breakout and puts $2 back in focus.
The resistance levels to clear on the way up stack as follows:
- $1.60 — nearly 2 billion XRP changed hands here previously
- $1.68 — another 1.98 billion XRP traded at this level
- $1.86 — 3.47 billion XRP traded, breakout above opens path to $2.19
Why ETF Flows Matter Here
According to SoSoValue, U.S. spot XRP ETFs logged their 11th consecutive session of net inflows Tuesday, pulling in $14.38 million on the day and roughly $170 million across the streak that began August 18.
Cumulative net inflows since launch now stand at $1.68 billion with total net assets at $1.44 billion.
Franklin Templeton’s XRPZ (NYSE:XRPZ) led Tuesday with $6.63 million, followed by Grayscale’s GXRP (NYSE:GXRP) with $4.72 million and Canary’s XRPC (NASDAQ:XRPC) with $3.03 million.
Ali Martinez noted that ETF accumulation has not yet fully translated into price strength, but called the continued buying during a 20% pullback a constructive sign for the technical setup.
Why the Pullback Is Normal in Context
XRP rallied 71.8% from $0.988 to $1.70 during August before entering the current correction.
A 20% pullback after a 70% move is historically normal and keeps the broader trend intact as long as the $1.31 to $1.38 support holds.
Goldman Sachs, Jane Street, and Millennium Management rank among the largest institutional holders of spot XRP ETFs based on Q2 13F filings, as Benzinga reported Tuesday.
XRP Price Prediction: Key Levels to Watch
XRP compresses into the apex of a descending triangle at $1.32, with the flat support near $1.30 and the 20-day EMA at $1.31 both being tested simultaneously.
Key support levels for XRP if $1.31 breaks:
- $1.24 to $1.28 — Bull Market Support Band, deeper cushion below
Image: Shutterstock
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