XRP News Today: Why XRP's Controlled Decline Could Build a Stronger Foundation for Growth

^[1] XRP holders are advised by analyst Egrag to prioritize a controlled price correction over a rapid price surge, as the cryptocurrency faces structural challenges ahead of a potential long-term rally. Egrag, a prominent XRP analyst, argues that a "flush-out"-a temporary decline to key support levels-would strengthen the asset's foundation rather than risking a destabilizing short-term pump. According to his technical analysis, there is a 70% probability of XRP experiencing a pullback to the $2.35–$2.40 range, a so-called Fair Value Gap (FVG), before initiating a sustainable uptrend. This contrasts with a 30% chance of an immediate price spike, which he warns could lead to sharp corrections and erode long-term gains^[2].

The FVG concept, central to Egrag's outlook, refers to a price range where the market has yet to revisit after a sharp move to $3.66 in 2025. Filling this gap is seen as critical to resetting market structure and building confidence among holders. Egrag highlights historical patterns, noting that previous FVG fills on the 3-day chart took approximately 129 days, suggesting a potential timeline of mid-November for XRP to reach the $2.30 level. The analyst is currently monitoring $2.65 as a preliminary support level, though a deeper correction to $2.30–$2.40 would better align with his long-term bullish thesis^[1].

Whale activity further underscores the potential for a controlled correction. Analysts have observed significant accumulation of XRP by large holders, with over 120 million tokens purchased in 72 hours as of September 2025^[2]. This institutional positioning, combined with growing demand for XRP in cross-border payments and institutional adoption, suggests a strong foundation for future growth. Meanwhile, short-term volatility remains a risk, with open interest in leveraged positions recently wiping out $2.46 billion in under a week, highlighting the market's sensitivity to macroeconomic shifts.

The XRP Ledger (XRPL) ecosystem has also gained traction through innovations like mXRP, a liquid staking derivative that surged to $26.46 million in total value locked (TVL) within six days in September 2025. This development reflects rising institutional and retail interest in yield-generating mechanisms, with mXRP offering up to 10% APY while maintaining liquidity^[3]. Such advancements reinforce XRP's utility beyond speculative trading, positioning it as a DeFi hub with scalable infrastructure.

Egrag's cautious stance contrasts with the optimism of some retail investors anticipating a "Uptober" rally driven by ETF approvals. However, he cautions against overestimating the impact of short-term catalysts, noting that a flush-out would test key support levels and clear weaker hands before a sustainable move higher. A 17.5% drop from the current $2.85 level to $2.35–$2.40 is viewed as a necessary step to avoid a sell-the-news scenario, where prices stagnate after a major event^[1].

While the immediate outlook remains uncertain, the combination of structural analysis, whale accumulation, and ecosystem growth paints a picture of resilience for XRP. Analysts emphasize that a measured correction, rather than a speculative spike, would better align with the asset's long-term potential. As the market navigates this critical juncture, investors are advised to focus on fundamentals and avoid overreacting to short-term volatility^[3].