The $1.12 Threshold: A Reinforced Concrete Technical Support?
For several weeks, the XRP price has been experiencing a notable correction, but one price level seems to resist all selling pressure: $1.12. According to technical analysis, this point is no coincidence. It corresponds to a major confluence zone, often referred to as the “Golden Pocket” by experienced traders.
Indeed, this level aligns perfectly with key Fibonacci retracements drawn from the latest impulsive movements. When price bounces off such a zone after a retracement, it often signals that the bullish structure remains intact and buyers are aggressively defending their positions. Holding this support transforms a simple decline into a Buy the Dip opportunity for savvy investors.
Moreover, the Japanese candlestick structure on weekly timeframes shows exhaustion of bearish pressure. The lower wicks, which indicate rejection of lower prices, show that every incursion below $1.15 is immediately bought back. If this support holds, the technical configuration could quickly reverse to make way for an explosive breakout.
Institutions and Whales in Massive Accumulation Phase
Beyond the charts, it’s the capital flows that confirm the bottom thesis. Data from XRP exchange-traded products (ETPs) shows resilient capital inflows. Unlike retail investors who may succumb to panic, Smart Money is taking advantage of these levels to accumulate long-term positions through institutional vehicles.
Meanwhile, on-chain analysis reveals suspicious but positive activity from whales. Addresses holding between 1 million and 10 million XRP have resumed increasing their holdings precisely around the $1.10 – $1.12 zone. This silent accumulation is often the precursor to a violent upward movement, as large holders anticipate a favorable market resolution.
Finally, the derivatives market shows signs of cleanup. Open Interest has decreased, eliminating the excess leverage that was weighing on the price. With neutralized Funding Rates, the market is now less susceptible to liquidation cascades, paving the way for organic and sustainable growth toward new highs.
Can XRP Smash Through Its Resistance and Target $2?
If the $1.12 floor is indeed the bottom of this cycle, the question is no longer whether XRP will rise, but how high it can go. The next major resistance sits around $1.95, a psychological level that, once broken, could trigger massive retail FOMO.
Indicators are green for a resumption of the bullish trend, but caution remains warranted until volume confirms the movement. A solid weekly close above $1.30 would definitively validate the reversal scenario. In a crypto market where volatility reigns supreme, XRP appears ready to surprise its detractors and potentially revisit its annual highs.
However, $2 represents a major resistance that could push back XRP’s price if buyers are not numerous enough.
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