XRP Heads Towards $2.35 As Smart Money Fuels Growth

Since hitting a two-month low on 22/06, Ripple's XRP has slowly recovered, moving in a gradually increasing parallel channel.

Although the price recovery has experienced several declines, it seems to be driven by new investor confidence, especially from experienced market participants. This analysis contains the details.

XRP Signals Price Increase as Smart Money Targets Additional Profits

Since the end of June, the steady increase in XRP's Smart Money Index (SMI) indicates that 'smart money' is returning to the market and positioning for price increase potential. Indicators from this index show its value has increased 10% since 22/06.

Smart money refers to capital controlled by institutional investors or experienced traders who understand market trends and timing more deeply. SMI tracks these investors' behavior by analyzing daily price fluctuations. Specifically, it measures morning selling (when retail investors dominate) versus afternoon buying (when institutions are more active).

Such an increasing SMI signals that smart money is accumulating an asset, typically before significant price movements.

In XRP's case, its recent SMI increase since 22/06 suggests experienced investors are quietly accumulating tokens. This could be preparation for a larger price surge as speculation around an immediate XRP ETF continues to grow.

Moreover, XRP's Parabolic Stop and Reverse (SAR) confirms this price increase prospect. At the time of writing, the points forming the indicator are below XRP's price, providing dynamic support at $1.99.

A Parabolic SAR indicator determines a potential trend direction and reversal. When its points are set below an asset's price, the market is in an upward trend. It indicates an asset is experiencing upward price momentum, and its price may continue to rise if buying activity persists.

Smart Money Accumulation Could Trigger Breakthrough

At the time of writing, XRP is trading at $2.21, recording a 0.14% decrease over the past day amid a broader retreating market. If buying activity from smart investors becomes stronger, XRP could reverse its downward trend and climb to $2.35.

However, if the bearish side maintains control, they could push XRP's price down to $2.14. They could also potentially push the price below $2.