Four XRP Price Charts Indicate a Rally Towards $3

These four XRP price charts predict a rally toward $3

Recent analysis reveals a positive outlook for XRP, with technical signals indicating a potential price increase toward $3. Key indicators include bullish chart patterns, significant accumulation by holders, and a rise in buying activity.

Key Takeaways:

The breakout from a bull flag and an inverse head-and-shoulders pattern points to a target of $3 for XRP.
A notable decrease in XRP available on exchanges and record outflows suggest strong accumulation among investors.
The 90-day spot cumulative volume delta (CVD) has turned positive, indicating that buying activity is outpacing selling, which is a sign of sustained demand.

Bullish Indicators for XRP Price

XRP is currently displaying several technical and on-chain signals that suggest a possible price rally to $3 in the coming weeks. Here, we present four crucial charts that support the argument for a near-term breakout.

XRP Price Bull Flag Pattern Aimed at $2.97

The four-hour chart illustrates XRP validating a bull flag pattern after breaking above the resistance level at $2.63 on Wednesday.

A close above this level on the four-hour chart will set the stage for XRP’s ascendancy toward a targeted price of $2.92, signifying a 12% increase from its current value.

XRP/USD four-day price chart. Source: Cointelegraph/TradingView

Bull flags are generally regarded as bullish continuation formations, so XRP’s breakout above the flag’s upper trendline indicates the potential for further recovery. The relative strength index (RSI) also remains favorably positioned at 60, suggesting market conditions are supportive of upward movement.

Classic Chart Pattern Suggests Target of $3.02 for XRP

The price movement of XRP has formed an inverse head-and-shoulders (IH&S) pattern within the three-hour time frame. Analysts believe this pattern predicts a possible rally to $3.

The IH&S is a bullish chart configuration characterized by three troughs, with a lower “head” situated between two higher “shoulders.” According to technical analysis, a breakout above the neckline of this pattern can lead to a significant price surge.

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

As observed by analyst BlockBull, "$XRP has printed an inverse H&S pattern." The expected target for this formation, which adds the height to the breakout point at $2.50, is $3.02, highlighting a 14% increase from current levels.

One pseudonymous analyst, known as Altcoin Gordin, remarked that an “absolutely perfect move up from the right shoulder” could push the XRP price to $3 and beyond.

Declining XRP Supply on Exchanges

Data from Glassnode indicates a significant reduction in the XRP supply across exchanges over the last 30 days.

The chart below shows that the XRP balance on exchanges plummeted from 3.9 billion tokens on September 20 to 2.57 billion tokens on October 29.

XRP reserve on exchanges. Source: Glassnode

This decrease in supply implies that holders are less inclined to sell, reinforcing the bullish potential for XRP. This sharp drop is attributed to record outflows, with the net position change on centralized exchanges decreasing by 2.78 million XRP, a historical high according to Glassnode data. Such outflows are typically associated with significant accumulation by large investors, lessening the immediate selling pressure and heightening the likelihood of XRP’s resurgence toward $3.

Positive 90-Day CVD Bolsters XRP Bulls

An examination of the last 90 days’ cumulative volume delta (CVD) reveals that sellers have significantly lost control since October 14.

CryptoQuant data indicates that buy orders have regained dominance, signaling that more buying is occurring in the market relative to selling. This trend reflects sustained demand despite recent pullbacks, generally indicating that the price may rebound from current levels.

XRP spot taker CVD. Source: CryptoQuant

CVD is a measure of the difference in buy and sell volume over a three-month period. A positive CVD indicates optimism among traders, as it reflects active accumulation. If the CVD remains in the positive zone, it suggests that buyers are committed, potentially paving the way for another upward surge, akin to previous market rallies.