XRP's Volatile Ride: Analyst Predicts Explosive Move After Brief Dip Below $3

The cryptocurrency market has been volatile, with XRP drawing significant attention due to its recent price movements. XRP briefly surpassed the $3 threshold before retreating, capturing the interest of crypto analyst Zach Rector. As of early February 2025, XRP has experienced intraday price swings, ranging from $1.98 to $2.78. Rector believes this dip is a temporary overreaction and anticipates a strong recovery once market sentiment stabilizes.

Rector referenced the 2017-2018 bull run, during which XRP approached $2 three times before skyrocketing to its all-time high of $3.40. He suggests that history could be repeating itself, with the current price action representing the final retest below $3 before an explosive move upward. This analysis aligns with the Wyckoff accumulation cycle, which suggests that markets tend to establish a base before making a major move. If XRP is in the final accumulation phase, it could be poised for a breakout.

Rector also notes the impact of macroeconomic factors, specifically tariffs, on the market. He believes that the current overreaction to tariff-related news is leading to temporary downward pressure on assets like XRP. Historically, such overreactions tend to correct swiftly, often triggering a massive bounce when market sentiment stabilizes. If this pattern holds, XRP could see a significant price recovery once the effects of tariffs and broader economic concerns settle down.

Beyond technical patterns, several fundamental factors support the case for XRP’s long-term bullish trajectory. Increasing institutional adoption and utility, regulatory clarity, broader crypto market trends, and on-chain metrics & liquidity growth all contribute to the potential for XRP to reach new highs. While no price prediction is guaranteed, Rector’s analysis presents a compelling case for XRP’s imminent rally. Investors should remain cautious and consider risk management strategies, but if history repeats itself, this could be the final opportunity to accumulate XRP at sub-$3 levels before it enters price discovery mode.