Key takeaways:
XRP whales continue to accumulate during dips, enhancing prospects for a recovery.
The XRP price must remain above the $2.70 support to push towards $4.
On Wednesday, XRP (XRP) showed robustness, rising 6.8% from Monday’s low of approximately $2.70 as traders adapted to the recent sell-off caused by an overleveraged market.
A solid technical setup and on-chain data indicate that the XRP/USD pair is primed for a trend reversal towards $4.
XRP symmetrical triangle pattern aims for a 42% rally
Data from Cointelegraph Markets Pro and TradingView reveals XRP bouncing off the lower trend line of a symmetrical triangle on the daily timeframe, as illustrated in the chart below.
A symmetrical triangle chart pattern signifies price consolidation between two converging trend lines, forming a triangle. It indicates uncertainty, with reducing volatility, often leading to a breakout.
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For XRP, an upward breakout above the triangle’s resistance at $3 could indicate a trend reversal. Such a movement could open the door to a measured target of $4.08, a 42% increase from current levels.
Bulls need to overcome resistance from $3.40 and the eight-year high at $3.66 before reaching the target.
Trader and analyst CasiTrades observed that XRP formed a “massive wick down to a double bottom near $2.70” on the four-hour chart.
“This double bottom is still valid within a Wave 2 count, provided the price stays above $2.70,” she stated in an X post on Tuesday.
According to CasiTrades, critical levels to monitor below are immediate support at $2.79 and the recent low at $2.70. A drop below this level would bring $2.58 support into play.
“Looking ahead, the next major resistance targets are $4.00 and $4.40,” based on Fibonacci extension levels, she added:
“The market is poised for a significant trend shift.”
The bullish sentiment was echoed by crypto analyst CryptoBull, who indicated that XRP’s price could soar to $5 in October if it breaks out of a bull flag pattern.
Can whale accumulation spark XRP rebound?
Various indicators suggest XRP prices may maintain their upward trajectory despite concerns of further declines following Monday’s sell-off.
For example, Santiment’s Supply Distribution metric indicates a consistent uptick in the supply held by entities with 1 million to 10 million tokens over recent days. These addresses now command 6.77 billion XRP after acquiring an additional 30 million tokens between Monday and Tuesday, representing 11% of the total XRP circulating supply.
Essentially, most whales did not liquidate during this week’s drop to $2.70 but instead accumulated XRP, indicating confidence in further price gains.
By purchasing the dips, these large entities can alleviate selling pressure and establish a price floor, prompting smaller retail investors to follow suit.
Meanwhile, XRP’s net holder position change has been significantly positive since August 22. This change followed a period of red outflows in July and early August, coinciding with profit-taking after reaching the $3.66 multi-year highs.
The chart above illustrates that substantial XRP accumulation occurred in the $2.70–$3 range, suggesting that investors are positioning for upward movement rather than exiting the market.
This also underscores why these levels are critical for XRP traders looking ahead.
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.
