XRP at $2.20? Expert Claims It’s Still Not Too Late to Invest

XRP has stabilized around the $2 mark, yet signs of activity are becoming more pronounced. An analyst known as “J4b1” recently suggested that buying XRP at $2.20 is still a viable option. He believes it might be the ideal moment just before potential substantial changes occur. His analysis is based on prior price trends, Ripple’s current tactics, and expectations regarding institutional actions.

XRP Price Maintained by Ripple’s Monthly Operations

Ripple’s control over the XRP supply is a key component of J4b1’s perspective. Each month, the company releases 1 billion XRP from escrow, selling only a small portion. The unsold amount is returned to escrow, and these transactions typically happen through over-the-counter (OTC) arrangements rather than in public markets. The analyst argues that this approach helps stabilize Ripple’s price and minimizes drastic shifts.

He provided an example: If Ripple needs to facilitate a $200 million transfer using 100 million XRP, each coin must be valued at $2. Should the price escalate too quickly, Ripple can liquidate additional coins. Conversely, if the price drops significantly, they may opt to repurchase some. This methodology could explain why XRP has struggled to surpass the $2.20 mark.

Institutional Interest Could Shift the Landscape

J4b1 pointed out several factors that could propel XRP’s price upwards. He mentioned the potential for clearer regulations from a new administration that might be more favorable to cryptocurrencies. He also discussed the prospect of an XRP spot ETF and the increasing prevalence of tokenized assets on the XRP Ledger.

The analyst contends that if larger institutions start accumulating XRP in significant volumes, Ripple’s current strategies might not be enough to keep prices in check. A surge in demand could lead to substantial price increases.

XRP’s Historical Context Provides Insights

XRP’s story began in 2012 when its value was less than a cent. Over time, it gained traction as Ripple marketed it to banks as a solution for expediting and reducing the costs of cross-border payments. This momentum saw XRP peak at $3.80 during the 2017 market surge.

However, the landscape shifted dramatically with increasing regulatory scrutiny. Ripple faced a fine from FinCEN in 2015, and the SEC lawsuit in 2020 impeded XRP’s acceptance and suppressed its price. Despite these hurdles, Ripple continued its growth strategy, acquiring companies like Metaco and securing licenses worldwide.

Increase in Whale Wallets

Meanwhile, despite XRP’s stable price, large holders are amassing more coins. Recent data shows that over 300,000 addresses now hold at least 10,000 XRP, up from approximately 281,000 in December 2024. The increase in these significant wallets continues as the price stays mainly flat around $2.20.

This accumulation suggests a market consensus that prices may rise in the future and can be seen amid growing global uncertainties, motivating investors to prepare for a potential breakout.

XRP traders are closely vigilant, and a sharp upward movement could be imminent.