Key takeaways:
-
Bull flag breakout and inverse head-and-shoulders pattern target $3 XRP price.
-
A sharp decline in XRP exchange and record outflows signal strong accumulation.
-
90-day spot CVD turns positive as taker buy volume dominates, indicating sustained demand for a rally.
XRP (XRP) is flashing multiple technical and onchain signals suggesting that a rally to $3 is possible over the next few weeks. Here are four charts making the case for a near-term breakout.
XRP price bull flag pattern targets $2.97
The four-hour chart shows XRP validating a bull flag pattern, after the price broke above the resistance from the flag’s upper boundary at $2.63 on Wednesday.
A four-hour close above this area would clear that path for XRP’s rise toward the measured target at $2.92, representing a 12% increase from the current price.
Bull flags are typically bullish continuation patterns, and XRP’s break above the flag’s upper trendline suggests the altcoin is poised to resume its recovery.
The relative strength index remains within the positive region at 60, suggesting that the market conditions still favor the upside.
Classic chart pattern projects $3.02 XRP price
XRP price action has formed an inverse head-and-shoulders pattern in the three-hour time frame, which suggests a potential rally to $3, according to analysts.
An inverse head-and-shoulders pattern (IH&S) is a bullish chart formation that forms with three troughs: a lower “head” between two higher “shoulders.”
As a technical rule, a breakout above the pattern’s neckline may trigger a parabolic price rise.
Related: Ripple-backed Evernorth nears launch of publicly traded XRP treasury
“$XRP has printed an inverse H&S pattern,” said analyst BlockBull in an X post showing the altcoin’s price action on the three-hour chart, adding:
“Could $XRP Reach $3 before Wednesday’s Fed Meeting?”
The measured target for this pattern, which is the height added to the breakout point at $2.50, is $3.02, representing a 14% increase from the current level.
As pseudonymous analyst Altcoin Gordin said, an “absolutely perfect move up from the right shoulder” is going to set XRP price to $3 and beyond.
As Cointelegraph reported, XRP is flashing strong bullish signals, with Evernorth’s $1 billion accumulation and record exchange outflows fueling expectations of a surge toward $3 in November.
Decreasing XRP supply on exchanges
The XRP supply on exchanges has decreased substantially over the last 30 days, as evidenced by data from Glassnode.
The chart below shows that the XRP balance on exchanges dropped by 1.4 billion tokens to 2.57 billion on Wednesday from 3.9 billion on Sept. 20.
The reduced supply on exchanges suggests a lack of intention to sell among holders, reinforcing the upside potential for XRP.
The sharp decline is the result of record outflows, with the XRP net position change on centralized exchanges falling by 2.78 million, the most in history, according to Glassnode data.
Such outflows typically indicate substantial accumulation by large holders, reducing immediate sell-side pressure and reinforcing the possibility of XRP’s rebound to $3.
Positive 90-day CVD supports XRP bulls
Analyzing the 90-day spot taker cumulative volume delta (CVD) reveals the extent to which sellers have ceded control since Oct. 14.
Data from CryptoQuant shows that buy orders (taker buy) have become dominant again. In other words, more buy orders are being placed in the market than sell orders.
This suggests sustained demand despite the recent pullback and generally signals that the price may recover from current levels.
CVD measures the difference between buy and sell volume over three months. Positive CVD also indicates optimism among traders, as they’re actively accumulating.
If the CVD remains green, it means buyers are not backing down, which could set the stage for another wave of upward movement, as seen in past rallies.
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.
