Ripple’s cross-border token, XRP, has seen a 3% decline over the past week and a 7% drop on a monthly basis, currently trading around $1.03 according to CoinGecko.
Potential Catalysts for a Rally
Despite the recent downturn, prominent analyst Ali Martinez has identified two key factors that could fuel a potential upcoming rally for XRP.
Martinez points to the Tom DeMark Sequential indicator, which has generated a buy signal on XRP’s monthly chart. He suggests this could signal a significant shift from bearish to bullish momentum. Historically, this indicator has preceded major reversals for XRP, including substantial price surges in April 2020 (1,074%) and August 2022 (973%). Conversely, it also preceded a 57% nosedive in April 2025 after flashing a sell signal.
The second catalyst highlighted by Martinez is a notable buying spree among large investors, often referred to as “whales.” He revealed that these major players have acquired over 380 million XRP, valued at nearly $400 million, in the last seven days. This has increased their total holdings to approximately 8.2 billion tokens, representing 13.1% of the asset’s circulating supply. This accumulation is seen as an encouraging sign, potentially indicating preparations for further price appreciation. Such activity could also invigorate broader community enthusiasm and attract smaller investors, injecting fresh capital that may support the price.
Key Resistance and Price Targets
Martinez also emphasized the critical resistance level at $1.06, where a significant volume of nearly 3 billion XRP has been transacted. He believes a monthly close above this zone could pave the way for XRP to reach $1.35 and potentially surge to $1.64. This is not the first time Martinez has focused on this price point; earlier this month, he warned that a drop below it could lead to a substantial collapse to as low as $0.62.
Market Reactions and Technical Indicators
Late last week, XRP dipped to around $1.02 following news that the CLARITY Act, a proposed crypto regulatory framework in the U.S., would be delayed until September. On X, user Dark Defender observed that this decline pushed XRP’s Relative Strength Index (RSI) into an extremely oversold territory, anticipating a significant revival once the price climbs above $1.05.
Another analyst, Gerla, also commented on the RSI, noting a bullish divergence. Gerla predicted that a reclaim of the $1.08 level could trigger a “serious reversal” for XRP.
Meanwhile, X user ChartNerd presented a more optimistic outlook, identifying a multi-year cup-and-handle pattern. This pattern, they suggest, could precede a rally to as high as $27. While this target appears ambitious at present, the future trajectory of the cryptocurrency market remains uncertain.
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