XRP (XRP) has rebounded nearly 21% from its sub-$2 lows reached on Nov. 21, as multiple technical and onchain signals put a $2.80 target within reach.
Key takeaways:
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XRP technical chart setups converge on a $2.80 target.
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Declining supply on exchanges suggests a lack of intention to sell by holders, signaling long-term conviction.
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Positive Spot taker CVD remains, and persistent XRP ETF inflows suggest confidence among buyers.
XRP price bull pennant targets $2.80
The four-hour chart shows XRP price trading with a bull pennant, hinting at a strong upward move once the pattern is confirmed.
“$XRP is looking really solid here,” said analyst Crypto Batman in an X post on Friday, adding:
A four-hour candlestick close above the pennant’s upper trendline at $2.22 will clear that path for XRP’s rise toward the bull pennant’s target at $2.80, representing a 25% increase from the current price.
XRP/USD four-hour chart. Source: Cointelegraph/TradingViewThe relative strength index has increased to 55 from oversold conditions of 23 on Nov. 21, indicating a significant increase in upward momentum.
As Cointelegraph reported, a break above the 20-day EMA at $2.20 could signal a potential trend change, bolstering buyers to push the XRP/USD pair toward the upper boundary of the descending channel at $2.70.
XRP’s V-shaped recovery pattern targets $2.70
Zooming out, XRP’s price action has been forming a V-shaped recovery chart pattern on the daily chart since early November, as shown below.
The XRP/USD pair now trades below a key supply zone between $2.30 and $2.63, where all the major simple moving averages (SMAs) sit.
Related: XRP jumps 8% as Franklin Templeton, Grayscale ETFs begin trading
Bulls need to push the price above this area to increase the chances of the price rising to the neckline at $2.70 and completing the V-shaped pattern. Such a move would represent a 23% price increase from the current levels.
XRP/USD daily chart. Source: Cointelegraph/TradingViewXRP bulls should also be encouraged by the moving average convergence divergence (MACD) indicator, which signals a bullish cross and a strengthening upward momentum.
With the “MACD turning green and the RSI recovering, XRP’s momentum is slowly returning,” said analyst Terra Army in an X post, adding:
Falling XRP supply on exchanges is bullish
There has been a notable decline in XRP supply on exchanges over the past 60 days, as indicated by data from Glassnode.
The chart below shows that the XRP balance on exchanges dropped by more than 45% to 2.6 billion tokens on Thursday from 3.95 billion XRP on Sept. 21.
XRP balance on exchanges. Source: GlassnodeA reducing balance on exchanges suggests a lack of intention to sell by holders, reinforcing the upside potential for XRP.
“XRP reserves on Binance are collapsing as holders move XRP off the exchanges,” said X user BD, adding:
XRP spot taker CVD signals high buyer volumes
Analyzing the 90-day spot taker cumulative volume delta (CVD) reveals that buy orders (taker buy) have become dominant again. CVD measures the difference between buy and sell volume over a three-month period.
Until late October, sell-side pressure dominated the order book, with the XRP/USD pair crashing to multimonth lows of $1.58 on Oct. 10.
Positive CVD (green bars in the chart below) indicates a rebound in demand, with buyers taking control.
If the CVD remains green, it would mean buyers are not backing down, which could set the stage for another leg upward, as seen in historical recoveries.
XRP spot taker CVD. Source: CryptoQuantThe chart above suggests that more buy orders are being placed in the market than sell orders.
This suggests sustained demand despite the recent rally and generally signals that the price may continue its upward trend.
Spot XRP ETFs produce nine-day inflow streak
Sustained demand for XRP can be attributed to US-based spot XRP exchange-traded funds (ETFs), which continued to attract investor interest. These investment products have recorded nine straight days of inflows since launch, underscoring institutional demand.
US-based XRP ETFs added $2.81 million on Thursday, bringing cumulative inflows to $643 million and total net assets to over $767 million, per SoSoValue data.
Spot XRP ETF flows data. Source: SoSoValueThe 21Shares spot XRP ETF is expected to go live on Monday, and more ETFs are still awaiting approval, which may add more tailwinds for XRP price.
As Cointelegraph reported, multiple indicators suggest that XRP is bullish at current prices, reinforcing the potential for it to move higher toward $3.30–$3.50 in the coming weeks.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: https://cointelegraph.com/news/five-xrp-charts-suggest-short-term-price-rally-2-80?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
