XRP has recently found itself in a whirlwind of price fluctuations, plummeting from $2.8 to as low as $1.58 amid a broader market downturn. However, the cryptocurrency has shown signs of resilience, currently trading around $2.5, and this recovery may be tied to a critical metric: the Spent Output Profit Ratio (SOPR).
Market analyst Xaif Crypto has highlighted the significance of the SOPR, which recently dipped to 0.95, marking its lowest level in six months. This decline has sparked discussions about the potential for XRP’s next price movement, with Xaif suggesting that if the current trend continues, XRP could aim for a target range of $3.10 to $3.35.
XRP SOPR Drops to a Six-Month Low
The SOPR metric serves as a barometer for investor behavior, indicating whether they are selling at a profit or a loss. A SOPR below 1 suggests that investors are liquidating their XRP holdings at a loss, while a value above 1 indicates profitable sales. Following a market crash on October 10, the SOPR fell below 1 for the first time since April, leading to a flurry of panic selling.
This latest dip in SOPR mirrors a previous scenario in April, when XRP’s price hit a low of $1.61 and the SOPR fell to 0.92. Remarkably, XRP rebounded by 35% shortly after, climbing to $2.58. Analysts are hopeful that a similar rebound could occur now, especially if the SOPR remains near the 0.95 mark.
The Path Forward for XRP
If XRP follows the recovery pattern observed earlier this year, a 35% rebound could elevate its price to the anticipated range of $3.10 to $3.35, surpassing the critical psychological threshold of $3. This milestone is not merely a number; it could symbolize a broader resurgence for XRP in the market. Xaif’s predictions resonate with the growing sentiment that the recent SOPR drop reflects temporary panic rather than a long-term bearish trend.
Support for this bullish outlook comes from veteran analyst Peter Brandt, who has identified a favorable long-term structure in XRP’s chart. Brandt’s analysis, along with insights from other experts, indicates that XRP may be on the brink of significant upward movement. In fact, some analysts, like CryptoInsightUK, are even speculating that XRP could reach between $8 and $12 in the long run.
With a consensus among analysts pointing toward upward momentum, investors are keenly observing the SOPR for further signs of recovery. The convergence of a low SOPR and the potential for a rebound could set the stage for XRP’s next significant price move.
In summary, XRP’s recent market dynamics, particularly the drop in SOPR to 0.95, suggest a potential recovery toward the $3 target. If historical patterns hold true, XRP may be poised for a 35% rebound, pushing it closer to a key resistance level.
