Can XRP Break $2 As Top Validator Rules Out Supply Shock

The XRP price edged up 1% over the past 24 hours to $1.90 as of 4:47 a.m. EST, on trading volume that rose 67% to $1.6 billion.

The Ripple token price is closing in on the $2 level, as Vet, an XRPL dUNL validator, has rejected this view, saying exchanges have large amounts of XRP in their hoard. Moreover, he says that market conditions do not support the idea of a looming supply shock.

Exchanges hold close to 16 billion XRP, which remains easily accessible to traders, as holders can transfer their tokens to trading platforms within three to four seconds. According to Vet, such speeds would prevent the supply from staying tight.

Meanwhile, Wall Street indicates that the XRP price could soar 315% by 2026, with some analysts predicting a $8 target.

Geoffrey Kendrick of Standard Chartered has pointed to the SEC’s withdrawal of its appeal against Ripple and a possible spot XRP exchange-traded fund (ETF) as key catalysts.

Can XRP price continue to recover after a 13.2% drop over the last month?

XRP Price Indicators Hint At A Potential Reversal Within A Falling Wedge

According to the XRP/USD daily chart analysis, the XRP price is currently trading within a descending consolidation phase, compressed within a falling wedge pattern, reflecting cautious sentiment among market participants.

The Ripple token price rallied strongly earlier in the year, reaching an all-time high (ATH) above the $3.40 region before losing bullish momentum.

Following this rally, sellers regained control, pushing XRP into a prolonged decline marked by lower highs and lower lows, forming a falling wedge.

Despite the continued downtrend, price action has recently stabilized near the $1.8 support zone, where XRP is consolidating close to the lower boundary of the wedge. This area has acted as a short-term cushion against further downside pressure.

The bearish structure has been reinforced by the Simple Moving Averages (SMAs). The 50-day SMA, currently around $2.06, has become immediate resistance, while the 200-day SMA, near $2.57, remains significantly above the Ripple token’s price.

XRP has been trading below both the 50-day and 200-day SMAs, confirming that the broader trend remains bearish. Previous attempts to reclaim the 50-day SMA have been rejected, highlighting persistent selling pressure.

However, short-term analysis suggests XRP may attempt a rebound toward the 50-day SMA if buyers defend the lower wedge support and momentum stabilizes.

The Relative Strength Index (RSI) is currently hovering around 44, remaining below the neutral 50 level but no longer in oversold territory. This suggests weakening bearish momentum and opens the possibility for a relief bounce if buying interest increases.

Meanwhile, the Moving Average Convergence Divergence (MACD) is slightly bullish, with the MACD line now crossing above the signal line. The histogram bars are flattening near the neutral line, suggesting that downside momentum is weakening.

Ripple Token Price Prediction

If XRP manages to break above the upper wedge resistance and reclaim the 50-day SMA around $2.06, the next key resistance area lies near the $2.50–$2.60 zone, where the 200-day SMA is positioned.

On the downside, if the Ripple token price fails to hold the $1.90 support and breaks below the wedge, the next downside target is around $1.75, which could act as the next demand zone.