XRP prices may be about to usher in long-awaited market by bulls

XRP prices are currently under pressure along with the entire cryptocurrency market. As of press time, the token was trading at approximately US$1.33, down approximately 2.7% in the past 24 hours. However, the latest decline has pushed XRP directly into a critical area-an area that will determine whether the recent correction deepens further or becomes the cornerstone of another rally.

Crypto analyst Ali Martinez released a five-part analysis report today, asking a simple question: Can XRP rebound to $2? His argument revolves around three factors. XRP is currently in an important on-chain support area; despite weak prices, spot XRP ETFs continue to attract inflows; meanwhile, short-term charts show what Martinez sees as a potential bullish flag pattern. The key is that bulls still need to recover an important level: $1.38.

4.8 billion XRPs make US$1.31 -1.38 a key area

The first part of Martinez's bullish argument comes from the XRP's on-chain supply distribution. According to data he shared, more than 4.8 billion XRPs were previously purchased in the range of US$1.31 to US$1.38. With XRP's current price around $1.33, the token is trading within this area. This makes current prices particularly interesting.

A large concentration of supply near a certain price can sometimes provide support because the cost base of many holders is in that region. If buyers continue to stick to this level, the market may form a bottom and a new round of recovery may be brewing. Martinez has previously highlighted a more concentrated area, between $1.35 and $1.38, where about 3.2 billion XRPs changed hands, according to the URPD data he cited. It is important to note that URPD should not be confused with ordinary exchange trading volume. It estimates where the current supply in circulation was last moved or purchased, so it helps identify areas with large supply and similar cost bases along the chain.

Therefore, the broader $1.31 -1.38 area is the current battlefield. XRP is currently testing this area.

Can XRP rebound to US$2? 15

-- Ali Charts (@alicharts) September 2, 2026

XRP entered a correction after a rise of 71.8%.

Today's weak trend also needs to be seen in the background. Previously, XRP rose from US$0.988 to US$1.698, an increase of approximately 71.8%, before entering the current correction. When Martinez first pointed out this pattern on August 29, XRP had retreated about 20% from its high. This has changed the way the current decline is interpreted.

So far, this trend can still be regarded as a correction after a sharp rally rather than clear evidence that the entire bullish structure has failed. But once XRP loses its support below, this argument becomes quite weak. A continued break below $1.31 means that the area of huge demand that Martinez is focusing on has not been held, which could force traders to reassess the bullish pattern. For now, however, XRP is still within the region.

Spot XRP ETF adds another bullish factor

Martinez's second argument comes from institutional demand. According to data he shared, the U.S. spot XRP ETF recorded net purchases of approximately US$105 million in the week of August 24, equivalent to approximately 73.2 million XRPs. It is worth noting that this buying behavior occurred while the XRP itself was in the process of a correction. In other words, although demand for ETFs has not yet translated into stronger price performance, the demand remains positive.

This distinction is important. ETF inflows do not directly translate one-on-one into immediate increases in XRP prices. Existing holders can take the opportunity to sell, while derivative positions, broader cryptocurrency market sentiment and liquidity conditions may suppress the buying effect of ETFs in the short term. Still, sustained ETF inflows during the pullback are more constructive than seeing institutional demand disappear as prices fall. As a result, Martinez sees this flow as another potential source of support.

Breaking through US$1.38 may bring US$2 into focus

Technical form provides the final piece of the puzzle for Martinez's argument. On the hourly chart, he believes XRP is forming a bullish flag while testing support. Bullish flags are usually formed after a sharp rally followed by a controlled decline or sideways consolidation. Traders pay attention to these structures because once the upper boundary is breached, it often signals a continuation of previous gains.

For XRP, Martinez identified US$1.38 as an important trigger point. He believes that an hourly closing price above $1.38 will confirm a breakthrough and may put $2 in the spotlight. Judging from the current price of XRP at about $1.33, it would take about 50% to reach $2. This is an ambitious short-term goal, but it seems less extreme compared to the 71.8% increase XRP recently launched from below the dollar. Still,$2 should be regarded as a conditional goal rather than an inevitable expectation. XRP first needs to stop falling, hold the demand area of $1.31 -1.38, and then credibly recover $1.38.

Is the long-awaited market for XRP bulls about to open?

For XRP bulls, the current pattern has several reasons to pay attention to. The token sits directly on top of a huge cluster of on-chain cost bases;ETF demand remains positive during the pullback; and Martinez believes a potential bullish continuation structure is forming over a lower time frame. But there is an interesting contradiction with this pattern: $1.38 is both part of the support area and the price that XRP now needs to recover. With XRP at $1.33, the bulls have not confirmed anything yet. This makes the next step particularly important.

If XRP can hold on to US$1.31, recover above US$1.38 and stand firm, the argument that the recent decline is just a correction will become stronger. As Martinez envisions it, this will put $2 in the spotlight. On the contrary, if US$1.31 is lost, the supporting cluster of 4.8 billion XRPs will no longer play a role, and the bullish flag theory needs to be re-examined. So despite today's 2.7% decline, XRP may actually be approaching the most critical part of its recent correction.