Five XRP Charts Indicate a Short-Term Price Rally to $2.80

Five XRP charts suggest a short-term price rally to $2.80 is next

XRP has experienced a recovery of nearly 21% from its lows below $2 on November 21, as various technical and on-chain indicators suggest that reaching the $2.80 target is within reach.

Key Takeaways:

Technical analysis points towards a $2.80 target for XRP.
A reduction in XRP supply on exchanges indicates holders’ unwillingness to sell, reflecting long-term confidence.
A positive CVD (cumulative volume delta) for spot takers and ongoing XRP ETF inflows suggest strong buyer confidence.

Technical Analysis Shows XRP Heading Towards $2.80

Multiple technical setups for XRP converge on a price target of $2.80. The decreasing supply on exchanges indicates that holders are not looking to sell, which is a positive sign for the long-term potential of XRP. Additionally, a positive CVD for spot market buyers, alongside continuous inflows into XRP ETFs, reflects robust confidence among investors.

XRP/USD daily chart. Source: Cointelegraph/TradingView

XRPs Bull Pennant Indicates a Target of $2.80

The four-hour chart reveals that XRP is forming a bull pennant, which suggests a strong upward movement once the breakout is confirmed. Analyst Crypto Batman mentioned in a recent tweet that XRP appears solid, indicating that a candlestick close above $2.22 will pave the way for a rise to $2.80, translating to a potential 25% increase from the current price.

XRP/USD four-hour chart. Source: Cointelegraph/TradingView

The relative strength index (RSI) has climbed to 55 from an oversold level of 23 on November 21, showcasing a significant rise in upward momentum. As reported by Cointelegraph, a breakout above the 20-day EMA at $2.20 could indicate a potential trend reversal, pushing XRP toward the upper resistance of the descending channel at $2.70.

V-Shaped Recovery Points to a Target of $2.70

Looking at a broader perspective, XRP has formed a V-shaped recovery pattern on the daily chart since early November. Currently, the XRP/USD pair is below a crucial supply zone between $2.30 and $2.63, where key moving averages are located.

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For a successful upward movement, bulls must push the price beyond this zone to increase the likelihood of hitting the V-shaped pattern neckline at $2.70, representing a 23% increase from current pricing.

XRP/USD daily chart. Source: Cointelegraph/TradingView

The moving average convergence divergence (MACD) indicator is also signaling a bullish crossover, suggesting that upward momentum is strengthening. Analyst Terra Army points out that with the MACD turning green and RSI improving, XRP's momentum is gradually returning.

Declining XRP Supply on Exchanges is a Bullish Sign

Over the past 60 days, there has been a significant decline in the XRP supply on exchanges, as per data from Glassnode. The chart illustrates that the XRP balance on exchanges fell from 3.95 billion tokens on September 21 to 2.6 billion tokens by November 27.

XRP balance on exchanges. Source: Glassnode

This decreasing balance suggests that holders are less inclined to sell, which can enhance XRP's potential for growth. An analyst noted that Binance's XRP reserves have plummeted to about 2.7 billion, one of the lowest levels ever recorded, as investors are consistently pulling tokens off the exchange.

High Buyer Volume Indicated by XRP Spot Taker CVD

Examining the 90-day spot taker cumulative volume delta (CVD) reveals that buyer orders are once again dominant. CVD measures the difference between buy and sell volumes over a three-month period. Up until late October, there was considerable sell-side pressure, causing the XRP/USD pair to drop to multi-month lows of $1.58 on October 10.

A positive CVD indicates an increase in demand, with more buy orders reflecting a resurgence of buyer control. Should the CVD remain positive, it could lead to another upward movement, drawing parallels to previous recovery patterns.

XRP spot taker CVD. Source: CryptoQuant

The current chart suggests that buy orders are outpacing sell orders, indicating sustained demand despite the recent price rally. This is generally a good sign for potential continued upward momentum.

Continued Demand from XRP Spot ETFs

Investor interest in XRP has been further fueled by U.S.-based spot XRP exchange-traded funds (ETFs), which have shown consistent inflows, highlighting institutional demand. These funds recorded nine consecutive days of inflows since their launch, bringing in $2.81 million on Thursday, which totals cumulative inflows of $643 million and total net assets exceeding $767 million, according to SoSoValue data.

Spot XRP ETF flows data. Source: SoSoValue

The 21Shares spot XRP ETF is expected to launch on Monday, with additional ETF approvals anticipated, which could provide more positive momentum for XRP's price. As noted by Cointelegraph, various indicators imply that XRP remains bullish at its current price, reinforcing its potential ascent toward $3.30 to $3.50 in the weeks ahead.