Ripple (XRP) has seen its value plummet by nearly 10% over the past week, thwarting multiple attempts at recovery. The cryptocurrency is currently trading around $1.11, following a 2% dip on Tuesday.
Potential for Significant Gains
Despite the recent downturn, a market analysis by crypto analyst EGRAG CRYPTO suggests that XRP could surge to between $5.70 and $8 if historical price patterns surrounding a key technical level hold true.
EGRAG CRYPTO highlighted that XRP’s “Central Line” has historically served as a dividing point between periods of accumulation and significant price expansion. The analyst noted that the token has experienced substantial gains in previous market cycles after breaking above this level, leading to the identification of two potential upside targets for the current cycle.
According to the analyst’s chart, XRP is presently trading below the Central Line, which is positioned above the asset’s current market price and is projected to move into the approximately $2.20-$2.60 range over time. These projected targets are based on historical percentage gains above this level, rather than XRP’s current trading price.
EGRAG CRYPTO detailed that in one past cycle, XRP surged approximately 330% above the Central Line, while another saw gains of around 200%. An average of these movements suggests a potential expansion of roughly 265% above the Central Line, which the analyst estimates could place the asset near the $8 mark.
The analyst also presented a more conservative outlook, where XRP achieves only a portion of the gains seen in prior cycles. In this scenario, if the market delivers approximately 60% of the strength observed in the previous cycle, it would translate to an increase of about 120% above the Central Line, setting a target near $5.70.
Based on these calculations, EGRAG CRYPTO has identified $5.70 as the conservative target and $8 as the objective based on average historical cycle performance. These projections are rooted in historical price expansions above the Central Line, independent of current market sentiment.
The analyst cautioned that XRP remains below the Central Line, indicating it is still trading within an “uncomfortable zone.”
Easing Selling Pressure and Shifting Exchange Activity
Meanwhile, separate data from CryptoQuant indicates a potential easing of selling pressure on XRP, as large holders appear to be reducing transfers to Binance. Whale activity on the exchange has decreased in recent weeks, suggesting a reduction in short-term selling. However, XRP continues to trade below the McGinley Dynamic indicator, signaling weak overall momentum. A reclaim of this level is deemed necessary to support a stronger recovery, with the $1.08 area remaining a crucial support zone.
Concurrently, XRP activity has shown a notable shift towards South Korea’s Upbit exchange. Data reveals that Upbit’s net wallet-flow dominance surged from 13% on June 8 to 37% by June 22, marking its highest level in over a year.
During the same period, Binance’s reading dropped from 16% to zero, while Crypto.com also fell to zero, and Coinbase remained around 9%. Just two weeks prior, Binance had slightly outperformed Upbit, but the latest figures indicate a growing concentration of XRP deposits on the South Korean platform. This metric tracks whether deposits exceed withdrawals on individual exchanges, rather than total XRP holdings.
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