3 Reasons Why Ripple (XRP) Could Be Ready to Pump

Is there light at the end of the tunnel for XRP?

Ripple’s cross-border token has tracked the broader crypto downturn, sliding roughly 24% over the past month to its current level of $1.12.

Despite unfavorable conditions and fears of a deeper decline, several key factors suggest that a much-needed recovery could be on the horizon.

The Potential Catalysts

The first bullish sign was disclosed by the renowned analyst Ali Martinez. He revealed on X that the Tom DeMark Sequential indicator has flashed a buy signal on XRP, suggesting a possible rebound is imminent.

It is important to note that his post was met with mixed feelings, as some users claimed that the technical analysis tool has not been quite accurate in the past.

Earlier this month, Martinez touched on XRP again, saying he has been closely monitoring $0.90 and arguing that a plunge to that level could present “a compelling long-term buying opportunity.”

The second factor on the list is the asset’s Relative Strength Index (RSI). The ratio recently slipped well below 30 and now hovers around that mark, suggesting the token remains oversold and may be on the verge of a short-term rally. The index ranges from 0 to 100, and conversely, anything above 70 is interpreted as a bearish signal.

Third comes the declining amount of XRP tokens stored on Binance. CryptoQuant’s data shows that the figure has dropped to a four-month low of around 2.68 billion. The development indicates that some investors have moved their holdings from the world’s largest crypto exchange to self-custody solutions, thereby reducing immediate selling pressure.

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Bonus: The ETFs

The solid institutional interest in Ripple’s native cryptocurrency should also be mentioned. Over the past several weeks, inflows into spot XRP exchange-traded funds (ETFs) have exceeded outflows, suggesting that more conservative players, including pension funds and hedge funds, have increased their exposure to the coin.

As a result, financial giants such as Bitwise, Canary Capital, Franklin Templeton, 21Shares, and Grayscale were required to purchase real XRP to properly back the acquired shares. The first such products popped up towards the end of 2025, and since their launch, they have generated a cumulative total net inflow of almost $1.45 billion.

Meanwhile, spot BTC and ETH ETFs have been bleeding lately, suggesting that institutional investors have reduced their exposure to the two biggest cryptocurrencies.