CEO of German Investment Firm Sees Potential XRP Dip Below $1

XRP could still make a sweeping move below the psychological $1 mark, according to Tokentus Investment CEO Oliver Michel.

Michel shared this prospect in a recent XRP price analysis on Germany’s Der Aktionär TV. He identified major resistance and support areas while highlighting the disconnect between the XRP ETF inflows and the asset’s price trend.

XRP Could Fall Below $1

Michel analyzed the XRP weekly and daily charts, identifying a show of strength. Notably, XRP had recovered from the July 1 low of $1.02 to $1.18 on Saturday before the recent drop to its current price.

The analyst highlighted two possible trends for XRP, majorly dependent on the broader crypto market trend. He sees XRP potentially targeting higher prices if Bitcoin does not wash off again and weakens the market momentum.

In this case, the resistance at $1.29 becomes crucial. XRP peaked at this level on June 15, forming another lower high. A sustained break above this supply zone paves the way for higher prices. Michel predicted a breakout, subsequent retest, then bullish continuation.

However, he sees XRP falling below the $1 mark if Bitcoin drops lower. In this case, the rebound to Saturday’s high of $1.18 becomes a relief rally before the next leg down.

In the analysis, he identified the strong support at $0.91-$0.93 as the next likely target. From the current market price of $1.07, this represents a 15% to 13% drop.

XRP Dropping Despite Strong ETF Inflows

The Tokentus Investment CEO also discussed the disconnect between XRP’s price action and the institutional demand from its investment vehicles. Particularly, the US XRP spot ETFs have continued to attract fresh capital while the underlying asset’s price trends sideways.

Last week, the ETFs recorded net inflows of $17.19 million, marking their 9th consecutive weekly net positive flow. During the previous week, XRP increased by 10.4%. However, it has witnessed similar gains in subsequent inflow weeks.

During the past nine weeks, XRP has only recorded three green candlesticks. This has seen it drop from the high of $1.54 in mid-May to its current price, representing a 30.5% drop.

XRP ETFs’ performance also contradicts that of other major cryptocurrencies. For context, the Bitcoin ETFs saw net outflows of $526.6 million last week, their 8th consecutive weekly sell-off. The Ethereum spot ETFs also recorded outflows of $13.7 million last week, as some capital rotated into XRP.

Despite this price-inflow disconnection, Michel believes it is a matter of time before XRP goes parabolic. He believes something is brewing, and soon the inflow pressure from the ETFs will start reflecting on prices. When it does, a repeat of the late 2024 rally could happen.

The analyst mentioned events like the Ripple MiCA full compliance disclosure and the potential DTCC XRP integration as possible catalysts.