XRP approaches a turning point: Important levels to follow

The price of Ripple (XRP) shows hesitation on Monday, up 1.66% in the past 24 hours, trading at $2.23. As of now, this altcoin remains above the $2 mark, with many analysts pointing out important resistance levels that need to be broken to reach a new all-time high (ATH).

Investors increase allocation to XRP investment products

According to data from CoinShares, institutional investment demand for XRP-related products is increasing.

XRP ETP products recorded an inflow of $10.6 million in the week ending Friday, bringing the total inflow for the first half of this year to $219 million.

The net inflow data of the cryptocurrency fund (as of 30/5) | Source: CoinSharesOther large-cap altcoins such as Bitcoin, Ethereum (ETH) and Solana (SOL) also recorded net inflows of 2.2 billion, 429.1 million, and 5.3 million dollars respectively — indicating a significant increase in institutional investment demand for XRP.

The head of research at CoinShares, James Butterfill, stated:

"We believe that this enduring investment demand stems from a combination of several factors, particularly the increasing geopolitical instability and uncertainties surrounding monetary policy."

In addition, the supply of XRP held by addresses holding between 1 to 10 million tokens is also increasing. This wallet group currently owns 9.9% of the total XRP supply — an increase of 65% since the end of November 2024.

The price of XRP has increased by about 350% since that time.

The percentage of addresses holding between 1 million and 10 million XRP | Source: SantimentInterestingly, the amount of XRP held by whales continues to increase, even during the 35% price correction to $1.6 from January to April.

This could indicate that large investors — often seen as more patient and strategic — are quietly accumulating, anticipating the next price increases.

Important price levels of XRP to watch

To aim for a higher peak above the $3 mark, XRP needs to convert the resistance level of $2.6 into support. However, first, XRP needs to close the daily candle above the price range of $2.2–$2.3. This is the focal area of the important simple moving averages (SMA): the 100-day SMA at $2.2, the 50-day SMA at $2.25, and the 200-day SMA at $2.36.

XRP Daily Price Chart | Source: TradingViewThe price of XRP has "touched the extremely important breakdown zone of around 2.2 to 2.3 dollars," according to anonymous analyst Dom in a post on X.

The analyst explained that this price zone is where the convergence of average prices by volume (VWAP) occurs monthly and quarterly from all reversal points in the past four months, while coinciding with the downward trend line extending 160 days from the 7-year peak at $3.4.

"All these converging factors tell us one thing: this is a critically important area for the bulls to regain control and it may very well be seen as a new bullish reversal point."

XRP daily price chart | Source: DomIf XRP breaks through the 50-day SMA at $2.20, this could trigger a price increase up to $3.81 before July.

Meanwhile, the bears will try to maintain the resistance level of $2.2 in order to increase the likelihood of pulling the price below the $2.15 mark. The nearest target below is the important psychological level at $2.

The next notable area lies in the range of $1.95–$1.90 – the bottom zone that was established on June 22 after the U.S. airstrikes on Iran's nuclear facilities.

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