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XRP holders have received a critical update regarding the token's near-term outlook, based on recent market analysis and on-chain data. Over the past 45 days,
has experienced a nearly 20% price decline, consolidating within a descending triangle pattern near the $2.70 support level. Analysts suggest that the current price consolidation and on-chain indicators may signal the beginning of a potential reversal, with some forecasting a 60% to 85% rebound by the fourth quarter of the year.One key factor supporting this bearish-to-bullish shift is the token’s estimated leverage ratio on Binance, which has normalized to its yearly average. This reduction in high leverage positions indicates a lower risk of cascading liquidations, a factor that has historically contributed to sharp price corrections. Additionally, the net taker volume has shifted toward neutrality, suggesting a shift in trading dynamics with buyers and sellers now in more balanced positions.
Futures positioning data also points to a more favorable market environment. The aggregated futures cumulative volume
(CVD) has been declining steadily, while funding rates have normalized to levels consistent with quarterly averages. These developments indicate that speculative positions previously considered crowded have been liquidated, reducing the pressure on the token’s price during market corrections.Technical indicators further support a cautious bullish outlook. A fair value gap between $2.35 and $2.65 aligns with key Fibonacci retracement levels, historically strengthening the likelihood of price stabilization. Additionally, fractal analysis reveals a structural similarity to a previous Q1 breakout pattern, which could lead to a substantial price increase if the pattern repeats in the coming months. Crypto trader Javon Marks has highlighted a $4.80 price target for XRP, noting that as long as the $2.47 support level holds, a potential 66% upside could be on the horizon.
The broader context for XRP includes the conclusion of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC), which had significant implications for the token's classification and market dynamics. The XRP Army—a vocal group of retail investors—was credited by Ripple’s legal team and the presiding judge for their role in the case, influencing the court's determination that XRP itself is not a security. This legal clarity has contributed to renewed interest and volatility in the token’s price, reaching an all-time high of $3.65 earlier this year before stabilizing near $2.85.
Despite these developments, the cryptocurrency market remains subject to macroeconomic factors, including expectations around Federal Reserve interest rate policy. Some analysts have noted that crypto investors may have already priced in potential rate cuts, which historically have been bullish for the sector. However, recent hotter-than-expected inflation data has cast uncertainty over the extent of such cuts, introducing a layer of macroeconomic risk for all major cryptocurrencies, including XRP.
Source: [1] XRP stuck in downtrend, but 3 data points forecast 85% rebound (https://cointelegraph.com/news/xrp-downtrend-extends-but-data-predicts-85percent-bounce) [2] Ripple-SEC News: 'XRP Army' Credited by Lawyers in Case (https://www.coindesk.com/markets/2025/09/04/xrp-army-credited-with-helping-ripple-tilt-case-against-sec) [3] Better Crypto Buy:
vs. XRP (https://www.fool.com/investing/2025/09/04/better-crypto-buy-ethereum-vs-xrp/) [4] , Ethereum, and XRP All Continue to Drop. Here's What (https://finance.yahoo.com/news/bitcoin-ethereum-xrp-continue-drop-094900395.html) [5] Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, XRP (https://www.mitrade.com/insights/news/live-news/article-3-1097675-20250905)
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