XRP’s price has experienced a decline of over 4% in the last 24 hours, despite Ripple’s recent legal victory against the U.S. Securities and Exchange Commission (SEC). This unexpected drop has left many investors puzzled, but market analyst Ali Martinez remains optimistic about the future prospects of XRP.
Martinez points out that XRP has broken out of a bullish flag pattern on the weekly chart, a signal that often precedes a significant upward movement. He predicts that XRP could potentially reach $11 in the upcoming months, indicating strong potential for growth.
The recent short-term decline in XRP’s price is believed to be connected to Ripple unlocking 1 billion XRP tokens valued at approximately $3.28 billion on August 9. This unlocking occurred through three rapid transactions, deviating from Ripple’s usual monthly release schedule. While Ripple’s CTO David Schwartz clarified that this was a routine process, the sudden influx of supply seemed to have a temporary downward impact on prices.
Looking ahead in the short term, analysts note that XRP has been following a predictable pattern. After encountering resistance at the $3.35–$3.40 range, XRP experienced a pullback, filling a significant “fair value gap” from the bearish pressure in late July. The cryptocurrency is now gravitating towards a lower support area in the $3.15 to $3.08 range, which typically acts as a magnet for the market due to technical support and price imbalances.
In addition to technical factors, upcoming market events such as the release of U.S. CPI inflation data and geopolitical developments like Russia-Ukraine peace talks next week could be influencing investor sentiment. This uncertainty may be prompting investors to reduce risk exposure in anticipation of potential market-moving news.
In the short term, it is anticipated that XRP will continue to exhibit bearish tendencies, with a likelihood of testing support levels around $3.10. Despite the recent price fluctuations, the overall outlook for XRP remains positive, with potential for significant growth in the months ahead.