Key insights:
XRP whales are actively accumulating during dips, enhancing the potential for a recovery.
The XRP price must maintain support above $2.70 to allow a rise towards $4.
XRP (XRP) demonstrated resilience on Wednesday, rising 6.8% from Monday’s lows of approximately $2.70 as traders adjusted to the recent sell-off triggered by an overleveraged market.
A robust technical setup combined with on-chain data indicates that the XRP/USD pair is poised for a trend reversal toward $4.
XRP symmetrical triangle pattern anticipates 42% rally
Data from Cointelegraph Markets Pro and TradingView shows XRP rebounding off the lower trend line of a symmetrical triangle on the daily timeframe, as illustrated in the chart below.
A symmetrical triangle pattern represents a technical formation where price consolidates between two converging trend lines, creating a triangle. This indicates indecision, with decreasing volatility, typically leading up to a breakout.
Related: XRP ETF pump ‘disappointment,’ Bitcoin projected to reach $173K by 2025: Trade Secrets
In XRP’s scenario, an upward breakout above the triangle’s resistance at $3 could indicate a trend shift. Such a movement could pave the way toward the triangle’s measured target of $4.08, representing a 42% increase from current levels.
Before hitting the target, bulls must surpass resistance levels at $3.40 and the eight-year peak of $3.66.
Analyzing further, trader and analyst CasiTrades noted that XRP formed a “massive wick down to a double bottom near $2.70” on the four-hour chart.
“A double bottom like this still aligns with a valid Wave 2 count, as long as the price remains above $2.70,” she stated in a post on X on Tuesday.
For CasiTrades, critical levels to observe on the downside are the immediate support at $2.79 and the recent low at $2.70. A drop below this level would highlight the $2.58 support.
“To the upside, the next significant resistance targets are $4.00 and $4.40,” according to Fibonacci extension levels, she stated, adding:
“The market is gearing up for a significant trend shift.”
The bullish perspective was echoed by crypto analyst CryptoBull, who suggested that the XRP price could surge to $5 in October if it breaks free from a bull flag pattern.
Can whale accumulation spark XRP rebound?
Several indicators imply that XRP’s price might sustain its uptrend despite concerns about potential further losses following Monday’s sell-off.
For instance, Santiment’s Supply Distribution metric reveals a consistent increase in supply held by entities holding between 1 million and 10 million tokens over recent days. These addresses currently possess 6.77 billion XRP, having accumulated 30 million additional tokens from Monday to Tuesday. This accounts for 11% of the total XRP circulating supply.
In essence, most whales did not liquidate during this week’s drop to $2.70 but instead chose to accumulate XRP, indicating their confidence in further price increases.
By purchasing on the dips, these large entities help alleviate selling pressure and establish a price floor, encouraging smaller retail investors to follow suit.
Additionally, XRP’s net holder position change has been notably positive since August 22. This shift came after a series of red outflows in July and early August, coinciding with profit-taking after the multi-year highs of $3.66.
The above chart illustrates that significant XRP accumulation occurred within the $2.70–$3 range, suggesting that investors are positioning themselves for upward movement rather than exiting the market.
This also highlights why these levels are crucial for XRP traders to monitor moving forward.
This article does not offer investment advice or recommendations. Every investment and trading action carries risk, and readers are encouraged to conduct their own research before making decisions.
