XRP Price Prediction: After a 7% jump at the beginning of October, quickly dropping back after returning to $3, is the retail investor's bearish sentiment a signal for the bull run? Next target $5.

Ripple (XRP) started strong in early October with a 7% rise, briefly returning above $3.00, but then quickly fell below that level. This rapid reversal has led to unstable trader sentiment, with many analysts turning to short-term bearish predictions. However, in stark contrast to market sentiment, XRP's institutional support has reached unprecedented strength, surpassing BlackRock's market capitalization and closing in on Tether (currently around $174 billion). On-chain data shows that XRP's bullish/bearish ratio has fallen below 1.0, with negative commentary dominating, but analysts believe this is a positive signal. Whales are quietly accumulating, indicating that smart money is preparing for the next major pump.

Institutional strength unprecedented, but social sentiment cools

Despite Ripple's key legal victory, which brought regulatory clarity, institutional inflows, and Wall Street attention, the social sentiment at XRP shows signs of cooling.

· Institutional status elevated: XRP's market capitalization has surpassed BlackRock and may set its sights on Tether as the next target, highlighting its increasing institutional significance in the cryptocurrency space.

· Sentiment Reversal: According to Santiment data, the bullish/bearish ratio of XRP has fallen below 1.0, indicating that negative discussions have surpassed optimistic speculation.

· Inverse investment signal: Analysts believe that the widespread shift of retail investors to a bearish sentiment is actually a bullish signal. The market often goes against the trend - in April of this year, XRP experienced a similar drop in sentiment and a 25% correction, only to rebound over 125% afterwards.

· Smart money action: Whales are quietly accumulating, which usually indicates that smart money is building momentum in a market atmosphere of widespread skepticism.

XRP Whale Holdings Double, Sell Pressure Exhausted

On-chain data clearly indicates that top XRP whales are doubling down on their bets, and selling activity has noticeably decreased.

· Whale selling pressure subsides: Charts tracking the activity of top XRP whales over the past few months show that the previously blue peaks representing short-term selling pressure (a signal that whales are moving XRP to exchanges for sale) are gradually diminishing. This indicates that the major selling pressure from large holders is exhausting.

· Retail panic, whales accumulating: Glassnode's data confirms this trend: the supply of XRP held by wallets holding more than 100 coins has steadily increased throughout the consolidation phase. This stands in stark contrast to the panic selling by retail investors, indicating that whales are quietly accumulating chips.

XRP Technical Analysis: Break out of $3.10 targeting $5.00

Despite XRP's recent failure to break through the descending channel and its subsequent fall, the technical charts still suggest a potential bullish reversal.

· Key resistance: XRP is currently trading at around $2.91, with key resistance levels at $3.00 and $3.10.

· Bullish Launch: If the price can cleanly break through $3.10 and stabilize, it will trigger a strong rebound, targeting $3.60 to $3.70, which aligns with the major supply zone of the July highs.

· Downside risk: On the other hand, if XRP falls below $2.70, it may retest $2.60, where there is strong historical support.

· Momentum Accumulation: The Relative Strength Index (RSI) is at a neutral level, and the MACD is flat, indicating that momentum is building, but the direction has not yet been fully determined.

· Breakout signal: If the bulls can reclaim $3.00 with strong trading volume, a new upward trend may begin.

Conclusion

XRP's short-term price volatility is diverging from long-term fundamentals and on-chain activity: despite price swings around the $3.00 mark and low retail sentiment, XRP's institutional position has never been stronger, and whales continue to add to their holdings. This pervasive pessimism, coupled with the hoarding of smart money, has historically often preceded massive rallies. Technicals suggest that once XRP is able to break through the key resistance at $3.10 and gain a foothold, a bullish scenario will prevail and its upside momentum is expected to extend to the $3.70 or even higher $5.00 target, fully demonstrating its potential value in the face of regulatory clarity and institutional attention.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions cautiously.