XRP Has Been Resting at the $2 Level, but Indications of Movement Are Increasing

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XRP has been trading sideways at the $2 level, but there are increasing signs that this may be changing. One crypto analyst, known as “J4b1,” recently stated that it’s not too late to buy XRP at $2.20. In fact, he thinks it may be the perfect time, just before things change dramatically. His assertions are based on historical price action, Ripple’s current strategy, and what institutions may do next.

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XRP Price Stability Maintained By Ripple’s Monthly Activity

A key part of J4b1’s argument is Ripple’s dominance over XRP’s supply. Every month, the firm releases 1 billion XRP from escrow but sells only a portion of it. The remaining amount is put back into escrow. These sales usually occur via over-the-counter (OTC) channels rather than open markets. In the analyst’s opinion, this practice prevents Ripple from encountering strong price movements.

Is XRP about to explode or already overpriced?

Is buying at $2.20 smart or is it too late? Let’s break it down with data, historical context, and Ripple’s price control strategy. 🧵👇 pic.twitter.com. завтрашний деньwith J4b1 at 12:38:56 May, 4, 2025

He used an example: if Ripple wants to transfer $200 million using 100 million XRP, every coin will need to be worth $2. If the price increases too quickly, Ripple can sell more. If it decreases too far, they might buy some back. This strategy could be one of the reasons why XRP has not yet broken through the $2.20 resistance.

Institutional Demand Could Shift Everything

J4b1 mentioned a few factors that could drive XRP upwards. He cited the possibility of regulatory clarity from a new US administration that could be more crypto-friendly. He also discussed the prospect of an XRP spot ETF and the growth of tokenized assets on the XRP Ledger.

The analyst believes that if institutions begin accumulating XRP in large quantities, Ripple’s current approach may not be sufficient to contain the price. If demand outstrips the supply that Ripple holds, the price may surge.

The History of XRP Provides Clues

XRP’s journey began in 2012 when it was trading at less than a penny. It gradually gained momentum as Ripple sold it to banks to enable faster and cheaper cross-border payments. This momentum propelled XRP to a high of $3.80 during the 2017 bull run.

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However, the narrative changed when regulators intervened. In 2015, FinCEN fined Ripple. Later, in 2020, the SEC lawsuit slowed down XRP’s adoption and kept the price in check. Despite this, Ripple continued to expand by acquiring companies like Metaco and securing licenses in various countries.

Whale Wallets Are Growing Quickly

Meanwhile, as XRP’s price remains stagnant, the large holders are accumulating. According to recent statistics, there are now more than 300,000 addresses holding a minimum of 10,000 XRP. This is an increase from around 281,000 as of December 2024. The whale wallets continue to rise even though the price has largely remained flat around the $2.20 mark.

That type of buildup tends to indicate a sense that prices may rise further in the future. It’s occurring as global uncertainty increases, which may be encouraging investors to get ready for the next major move.

For the time being, XRP traders are closely watching this development. A quick move on the upside may not be far away.