XRP is attempting a breakout above resistance after rebounding from a key Fibonacci demand zone, as traders watch whether momentum can carry the coin decisively above $1.50.
A market technician noted that XRP tapped its first Fibonacci demand zone at $1.36, corresponding with the 0.382 retracement, before breaking descending resistance on lower time frames. The analyst identified $1.44 as the next hurdle and stated that a clean move through the $1.44 to $1.50 resistance band would likely open a path toward $1.80.
However, a rejection below $1.50 could send the price back toward Fibonacci demand targets, with closes below $1.36 exposing $1.31 and $1.26.
On the four-hour chart, XRP had traded below $1.50 for the past week while attempting to establish a higher low. The recent breakout above the descending resistance invalidated the immediate bearish setup, but confirmation would require sustained strength above nearby resistance.
Exchange data reveal XRP reserves on Binance have fallen to 2.5 billion coins, the lowest level since early 2024. In November 2024, reserves exceeded 3.2 billion XRP, implying that roughly 700 million coins have flowed off the exchange over 15 months.
Analysts interpret declining reserves as a signal of reduced sell-side liquidity and potential accumulation, as investors shift holdings to self-custody. That means any resurgence in demand could tighten supply and amplify upside volatility, as fewer coins are available for sale.
According to CoinMarketCap, XRP is down 0.19% in 24 hours to $1.45, outperforming a broader market gain of 3.44% amid renewed altcoin rotation. Strong volume and price action above key moving averages support the breakout thesis, though an RSI near 73 signals overbought conditions and a potential short-term pullback.
That said, the prevailing sentiment is bullish, supported by technical momentum and expanding activity on the XRP Ledger. Moreso, sustained volume growth and a firm hold above $1.41 are critical to validating a push beyond $3.
Source: https://zycrypto.com/xrp-exchange-reserves-drop-to-2-5-billion-as-bulls-await-much-awaited-3-rocket-move/
