TL;DR

Popular analysts consider XRPs price drop a normal pullback, suggesting targets between $4 and $12 remain in play.

Whale accumulation of over 280 million XRP and a fresh buy signal from the TD Sequential indicator hint that a new rally could soon begin.

Stay Calm, HODL Tight

The crypto market has lost some steam over the past 24 hours, with Ripples XRP being among the biggest losers. Its price retreated by double-digits, briefly dropping below $3. The bulls, however, put the brakes on the free fall, and the asset currently trades at roughly $3.13 (according to CoinGeckos data).

The pullback appears significant (especially when compared to the all-time high of $3.65 reached on July 18), but some analysts remain unconcerned. One example is John Squire, who described the correction as a coffee break.

He thinks theres nothing dramatic in XRPs drop with just a few cents. He also urged investors to stay calm, reminding them that the real crash occurred in 2018, when the price plummeted from $3.40 to $0.25 in a matter of months.

$XRP drops a few cents and y’all lose your minds… Meanwhile Bitcoin dumps $3K and it’s ‘just a healthy correction, bro.’ Stay calm, hodl tight, if you survived 2018, this is a coffee break.

X user Armando Pantoja shared a similar thesis. He believes the recent swing south is just a healthy pullback, setting a short-term target of $4.10 and a year-end one in the range of $8-$12. 

Legal clarity + ETFs + Breakout pattern forming: The crazy thing isthe real run hasnt even started, he added.

The Bullish Elements

The assets price collapse on a daily scale resulted in substantial losses for over-leveraged traders who had previously opened long positions on XRP. One potential factor that has negatively impacted the valuation is the millions of tokens that were sold on the Korean exchange Upbit in the span of 24 hours.

Nonetheless, other factors suggest a fresh resurgence could be brewing. Several hours ago, the X user Ali Martinez revealed that whales have purchased more than 280 million XRP in the last ten days. Such a development is typically viewed as bullish because it demonstrates strong confidence from big investors and reduces the number of tokens available on the open market.

Shortly after, Martinez chipped in again, claiming the TD Sequential indicator has flushed the buy signal for XRP.