XRP Forms Strong Support: Signs of a Possible Reversal

The price of XRP is currently exhibiting notable strength as it hovers around a crucial support level, resisting further downward pressure. Even amid challenges faced by the broader cryptocurrency market, XRP has continually maintained this critical level. With bearish momentum weakening and volatility decreasing, a potential price reversal may be on the horizon.

Key Takeaways

XRP is holding strong at a key support level, showing resilience amid broader market pressures.
Analysts are seeing signs of a potential upward reversal price action, with significant event catalysts like the introduction of XRP ETFs by Vanguard.
A classic 3-drive pattern hints at a possible trend change for XRP; the token must hold above the $2.22 level to confirm bullish momentum.
A significant withdrawal of XRP from exchanges suggests smart money accumulation, potentially leading to a downturn in selling pressure and price surges ahead.

With these developments, market watchers will continue to assess XRP's performance in the coming days.

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Strength in Support: XRP Remains Resilient

XRP has reached a point where it appears determined not to decline further. Crypto analyst Henry has noted on social media platform X that the token is making a significant statement right now. It is demonstrating strength precisely where it needs to, bouncing off its trendline support after consecutive down days.

This support level has been tested and proven effective with remarkable precision. However, this latest bounce feels distinct; the market structure seems cleaner, the atmosphere calmer, and the overall price movement appears more controlled. Regardless of whether a breakout occurs this time, it is clear that the situation is evolving rapidly.

In addition to this positive momentum, Bloomberg has reported that Vanguard, a major asset management firm with $11 trillion in assets, will allow clients to access their XRP ETFs starting tomorrow. Furthermore, US spot crypto ETF inflows for December 1st registered a solid amount exceeding $90 million. Given this backdrop, Henry posits that the next significant price target for XRP could be around the $2.20 level if market conditions support this movement.

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XRP preparing for a potential bounce | Source: Chart from Henry on X

Looking back at the XRP chart over the past six weeks, an inverted view reveals a classic 3-drive pattern, a configuration that has historically preceded significant reversal events in the crypto market. According to analyst Dom, this pattern indicates that a higher low has formed, suggesting that a trend change could be underway.

For a bullish scenario, bulls must reclaim the monthly RVWAP near the $2.22 level. Successfully holding above this mark would signify a crucial shift in market structure, paving the way for a continuation rally towards the $2.50 range. The order books indicate that if a momentum shift is to occur, this is the pivotal moment. However, if this price setup fails and XRP drops below $2.00, Don warns that the end of the year could present challenges.

The Importance of Exchange Balance as a Supply Indicator

Niels, co-founder of Tedlabsio and a trader, has highlighted that XRP has just signaled one of the strongest bullish indicators seen in the current market cycle. In the past two months, nearly 45% of the XRP supply held on exchanges has been withdrawn, indicating that a significant amount has been moved off trading platforms.

Such a sharp decline in exchange supply typically occurs when informed investors are accumulating assets. As the supply available on exchanges decreases, selling pressure diminishes, which often triggers substantial price movements. Niels believes that XRP is entering a phase that many investors have not yet recognized.

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XRP trading at $2.17 on the 1D chart | Source: XRPUSDT on Tradingview.com