thecryptobasic.com
$XRP could still make a sweeping move below the psychological $1 mark, according to Tokentus Investment CEO Oliver Michel.
Michel shared this prospect in a recent $XRP price analysis on Germany’s Der Aktionär TV. He identified major resistance and support areas while highlighting the disconnect between the $XRP ETF inflows and the asset’s price trend.
$XRP Could Fall Below $1
Michel analyzed the $XRP weekly and daily charts, identifying a show of strength. Notably, $XRP had recovered from the July 1 low of $1.02 to $1.18 on Saturday before the recent drop to its current price.
The analyst highlighted two possible trends for $XRP, majorly dependent on the broader crypto market trend. He sees $XRP potentially targeting higher prices if Bitcoin does not wash off again and weakens the market momentum.
In this case, the resistance at $1.29 becomes crucial. $XRP peaked at this level on June 15, forming another lower high. A sustained break above this supply zone paves the way for higher prices. Michel predicted a breakout, subsequent retest, then bullish continuation.
However, he sees $XRP falling below the $1 mark if Bitcoin drops lower. In this case, the rebound to Saturday’s high of $1.18 becomes a relief rally before the next leg down.
In the analysis, he identified the strong support at $0.91-$0.93 as the next likely target. From the current market price of $1.07, this represents a 15% to 13% drop.
$XRP Dropping Despite Strong ETF Inflows
The Tokentus Investment CEO also discussed the disconnect between $XRP’s price action and the institutional demand from its investment vehicles. Particularly, the US $XRP spot ETFs have continued to attract fresh capital while the underlying asset’s price trends sideways.
Last week, the ETFs recorded net inflows of $17.19 million, marking their 9th consecutive weekly net positive flow. During the previous week, $XRP increased by 10.4%. However, it has witnessed similar gains in subsequent inflow weeks.
During the past nine weeks, $XRP has only recorded three green candlesticks. This has seen it drop from the high of $1.54 in mid-May to its current price, representing a 30.5% drop.
$XRP ETFs’ performance also contradicts that of other major cryptocurrencies. For context, the Bitcoin ETFs saw net outflows of $526.6 million last week, their 8th consecutive weekly sell-off. The Ethereum spot ETFs also recorded outflows of $13.7 million last week, as some capital rotated into $XRP.
Despite this price-inflow disconnection, Michel believes it is a matter of time before $XRP goes parabolic. He believes something is brewing, and soon the inflow pressure from the ETFs will start reflecting on prices. When it does, a repeat of the late 2024 rally could happen.
The analyst mentioned events like the Ripple MiCA full compliance disclosure and the potential DTCC $XRP integration as possible catalysts.