Key takeaways:
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XRP price is up 2% on May 7, buoyed by US-China trade talk optimism, with key support at $2.08 critical for sustained recovery.
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Whale accumulation signals XRP price strength.
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XRP price must hold above $1.83–$2.00 support to continue upside, analysts say.
XRP (XRP) price displayed strength on May 7, rising 2% over the last 24 hours after news of possible US-China trade talks flipped investor sentiment.
XRP price remains above $2.00 at the time of writing, as several analysts highlight the key support levels the asset should hold for a sustainable recovery to new all-time highs.
Whale accumulation supports bullish XRP view
Certain indicators show that XRP’s ongoing price rise may not be just a short-term reaction to the positive macroeconomic news.
For instance, Santiment’s Supply Distribution metric shows a steady rise in the supply held by entities with a 1 million –10 million token balance. These addresses now own 9.44% of the total XRP supply, a 1.2% increase since Jan. 1.
This suggests that whales did not sell on the recent drop to $1.60 but accumulated XRP, suggesting most are positioning themselves for further gains.
By purchasing during downturns, these large entities can reduce selling pressure and create a floor for the price, encouraging smaller retail investors to follow suit.
Meanwhile, XRP open interest (OI) has seen a modest 0.32% rise to $3.65 billion over the last day, signaling a slight increase in trader confidence and liquidity. However, the 17% drop in trading volume to $3.9 billion is a cause for concern, suggesting low conviction as traders wait for the XRP price to establish a clear directional bias.
XRP price to $4 all-time highs?
Traders believe XRP can revisit its seven-year highs above $3.40 and beyond, but its potential to continue its gains depends on holding above key support levels.
Data from Cointelegraph Markets Pro and TradingView shows that XRP price bounced off the 200-day SMA at $2.08 on May 6, rising as much as 4.5% to today’s intraday high of $2.17, which is also the 50-day SMA.
Related: Why is XRP price down today?
The 200-day SMA coincides with the election volume-weighted average price (VWAP) and the monthly rVWAP, as shown in the chart below.
“This is an area that we want to see continue to get defended,” said trader and analyst Dom in a May 6 post on X, adding that failure to hold above this level could see XRP drop toward $1.90.
“To see an immediate trend reversal, we need to see the price regain $2.12.”
Fellow analyst Egrag Crypto said XRP price “should not and cannot close below $1.83.”
Meanwhile, pseudonymous analyst XForceGlobal believes “XRP is still well within bullish territory” as long as it stays above the multimonth low at $1.60 reached on April 7.
“New all-time highs look imminent.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
