- Volume Surge: XRP daily trading volume jumped over 50 percent, signaling potential short-term rebound.
- Support Critical: Holding $1.90 support is key for further upside toward $2.50.
- Caution Advised: Analysts warn extreme price predictions may mislead investors despite bullish signals.
Ripple’s XRP drew attention on December 15 as daily spot trading volume jumped over 50 percent. A TD technical indicator flashed a buy signal, hinting at a possible short-term rebound. Despite this, the cryptocurrency trades below the $2 mark, sitting around $1.99 at the time of writing. Analysts warn that the next price movement depends on whether buyers defend key support levels. Market watchers are carefully tracking these developments.
XRP Faces Pressure Despite Bullish Signals
XRP’s recent activity comes amid broader weakness in the crypto market. Bitcoin and major altcoins have faced selling pressure, pushing the total market cap from $4.28 trillion in early October to roughly $3.06 trillion now. These conditions have muted the impact of otherwise positive developments linked to Ripple. A notable boost came on December 12 when the Office of the Comptroller of the Currency granted Ripple Labs a bank charter.
This approval allows Ripple to expand operations with regulated financial partners. At the same time, US spot XRP ETFs continue to see strong inflows. Funds recorded more than $100 million last week and have maintained steady growth since launch, reaching nearly $1 billion in total inflows. Despite these positive signals, XRP still trades below the psychological $2 level.
Analyst Ali Martinez emphasized the importance of defending the $1.90 support area. Holding this level could pave the way for a move toward $2.50. If support fails, however, the price may face further downside. Technical indicators suggest short-term optimism, but caution is advised. Volume surges often hint at potential rebounds, yet volatility remains high.
Bold Price Predictions and Market Reality
Social media platforms have seen bold claims of XRP reaching $100 in the near term. Analyst Jack Humphries strongly cautioned that such targets are unrealistic. A $100 price would give XRP a market cap of around $5 trillion, far exceeding most global companies. These inflated targets can mislead retail investors and create false expectations.
Despite warnings, some analysts remain optimistic about a rally toward $10 under favorable conditions. XRP is currently about 48 percent below its all-time high of $3.84 set eight years ago. Strong institutional interest, ETF inflows, and regulatory approvals provide a solid foundation for potential growth. Traders should consider both technical indicators and broader market conditions when evaluating XRP.
While a buy signal and rising volume may suggest short-term opportunities, caution is necessary. Maintaining realistic expectations helps manage risk while positioning for potential upside if buyers continue to support key levels. Overall, XRP’s recent surge in volume indicates renewed investor interest. Support around $1.90 remains critical, and ETF demand signals steady institutional backing.
