XRP (XRP-USD) has strongly rebounded, climbing nearly 21% from its recent lows established on November 21st. This recovery is supported by a convergence of technical and on-chain indicators, suggesting a potential price rally toward the $2.80 mark in the very near future.
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The current price action suggests a strong bullish continuation. Multiple analysts are now pointing to a confluence of factors, including key chart patterns and institutional buying pressure, which reinforces the likelihood that XRP will test and break significant resistance levels in the coming days.
XRP Technical Charts Signal a Sharp Uptrend
The four-hour chart for XRP reveals the price is currently trading within a bull pennant formation, which is a classic pattern hinting at a strong upward move upon confirmation. Analyst Crypto Batman stated that XRP looks “really solid” and is breaking out of this strong continuation pattern.
A successful breakout requires a four-hour candlestick close above the pennant’s upper trendline at $2.22. If confirmed, this move clears the path for XRP to rally toward the bull pennant’s target of $2.80, representing a roughly 25% increase from the current price. Momentum is building, with the Relative Strength Index (RSI) climbing significantly from oversold conditions.
V-Shaped Recovery Nears Completion
Zooming out to the daily chart, XRP’s price action has been carving out a V-shaped recovery pattern since the start of November. The immediate challenge for bulls is pushing the price above a key supply zone between $2.30 and $2.63, where several major moving averages currently sit.
The Moving Average Convergence Divergence (MACD) indicator is encouraging bulls, showing a bullish cross and strengthening upward momentum. Analysts suggest that if XRP can reclaim the $2.30–$2.40 range with decent volume, it will increase the chances of the price rising to the V-shaped pattern’s neckline at $2.70, representing a 23% gain.
XRP Holders Reduce Supply on Exchanges
Data from Glassnode indicates a very bullish trend regarding holder conviction. The total XRP supply held on exchanges has seen a notable decline over the past two months, signaling a profound shift in market psychology away from immediate selling. This balance has dropped by over 45% to 2.6 billion tokens from 3.95 billion XRP recorded in late September.
This declining balance on exchanges suggests that long-term holders are moving their tokens into private wallets, indicating a clear lack of intention to sell. This dramatically reduces potential sell-side pressure, creating a stronger foundation for a major upward price movement.
Institutional Demand for XRP Fuels Buyer Volumes
The spot taker cumulative volume delta (CVD) analysis for the last 90 days shows that buy orders (taker buy) have become dominant, indicating a strong rebound in demand. After sell-side pressure dominated order books through late October, the now-positive CVD suggests buyers are taking control and not backing down.
This sustained demand is largely attributed to the continued growth of U.S.-based spot XRP exchange-traded funds (ETFs). These ETFs have recorded an impressive nine straight days of inflows since their launch. This showcases significant and persistent institutional interest, which has brought cumulative inflows to over $643 million.
The confluence of bullish chart patterns, shrinking supply on exchanges, and robust institutional demand through ETFs strongly suggests that XRP is primed for a major upward breakout. If buyers maintain control and break key resistance levels, XRP’s price is technically positioned to challenge the $2.70 to $2.80 range in the near term.
At the time of writing, XRP is sitting at $2.2007.
