Analyst Suggests Buying XRP at $2.20 as Price Movement Increases

XRP is currently stable around the $2 mark, with signs of potential movement. Analyst J4b1 suggests that buying XRP at $2.20 could be timely due to historical price trends and Ripple's strategies.

Ripple's Supply Management

Ripple releases 1 billion XRP monthly from escrow but sells only a fraction.
The remainder is returned to escrow, minimizing price volatility.
This strategy helps maintain price stability around $2.20.

Factors for Price Increase

Potential regulatory clarity from a new US administration.
Possibility of an XRP spot ETF.
Growth of tokenized assets on the XRP Ledger.
Increased institutional accumulation could exceed Ripple’s supply management, leading to price surges.

XRP's Historical Context

XRP has evolved since 2012, initially valued under a penny, reaching a peak of $3.80 in 2017. Regulatory challenges, including fines and lawsuits, have affected its adoption and price stability.

Increasing Whale Activity

There are over 300,000 addresses holding at least 10,000 XRP, up from 281,000 in December 2024. This increase in whale wallets suggests a potential bullish sentiment as investors prepare for future movements amidst global uncertainty.