Is XRP price under $3 an opportunity or the rally’s end? Analysts weigh in 

It took XRP (XRP) six years to reclaim $3, a psychological level it last attained during the crypto market’s 2017 bull run. However, macroeconomic shocks led by US President Donald Trump’s trade war saw XRP drop again below this level earlier this week.

As of Feb. 6, XRP’s price was trading for around $2.40, down about 30% from its record high of $3.40 established three weeks ago.

Nonetheless, the Ripple-associated token is still up by around 400% from its local low of around $0.50 in November 2024.

In other words, XRP is consolidating after a sharp rally as traders wait for further clues to confirm their next market bias.

That has further ignited discussions across the crypto community about whether XRP’s sideways moves represent the end of its current run or a golden buying opportunity.

Will XRP drop another 30-45%?

XRP price may drop another 30-45% in the coming weeks, according to popular market analyst Credibull Crypto.

In his latest analysis, he said that XRP’s price could drop toward its “local lows” defined by the $1.60-1.30 region, represented in green in the chart below.

Fellow analyst Nishant Bhardwaj echoes the $1.60 downside target, noting that XRP must hold above the $2.50 support level to ensure it sustains its upside momentum.

Bhardwaj wrote in an X post:

“Strong bounce from sub $2 levels suggests demand, but bearish pressure persists. Watch $2.50. A breakdown could lead to $2.00 & $1.61 support tests.”

Related: XRP bearish divergence raises chance of $2 retest — Here’s what bulls must do

Interestingly, further Volume Profile analysis of the $1.60-1.30 region shows its relevance as a high-volume area with significant trading activity in recent months.

The $1.60 level, in particular, is just 20 cents below the 200-day exponential moving average (200-day EMA; the blue wave) support.

Overall, the $1.60-1.30 area will likely act as a strong demand zone, with buyers likely stepping in.

XRP whales, South Korean traders buy XRP dip

Recent market activity highlights the importance of monitoring South Korean traders, who traditionally serve as a strong indicator of retail sentiment and speculative trading trends in the crypto market.

As observed in cumulative volume delta (CVD) charts by analyst LTRD, traders on Upbit aggressively bought Bitcoin (BTC) and XRP while simultaneously offloading Ether (ETH) during the latest market correction. CVD represents the net sum of buy and sell trades.

The behavior suggests strategic capital rotation where South Korean investors sought safety in BTC and XRP.

What stands out most is the consistent accumulation of XRP, particularly in contrast to Ethereum’s persistent selling pressure. Even more notably, Bybit traders mirrored this trend, with XRP purchases ramping up throughout the dip.

Meanwhile, XRP whales, especially those holding over 1 million tokens, have also accumulated during the current price dip, according to data from Messari.

This cross-exchange accumulation indicates that certain market participants treated the sell-off as a prime buying opportunity, reinforcing the thesis that XRP remains a high-conviction asset among specific investor segments.

Meanwhile, crypto analyst Dark Defender predicts XRP could hit $5.85 in the short term and $18.22 in the long run based on Elliott Wave Theory. XForceGlobal also sees XRP in its fourth wave on the daily chart, expecting a final push toward $5-$10.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.