Key takeaways:
A breakout of the bull flag and inverse head-and-shoulders pattern targets a $3 price for XRP.
A significant drop in XRP exchanges and record outflows indicate strong accumulation.
The 90-day spot CVD has turned positive, showing that taker buy volume is dominant, which implies ongoing demand for a rally.
XRP (XRP) is signaling various technical and on-chain indicators that a price rally to $3 could occur in the next few weeks. Here are four charts supporting the potential for a near-term breakout.
XRP price bull flag pattern targets $2.97
The four-hour chart illustrates XRP confirming a bull flag pattern after the price surged past the upper boundary resistance of the flag at $2.63 on Wednesday.
A four-hour closing above this level would pave the way for XRP’s ascent toward the measured target of $2.92, representing a 12% rise from the current price.
Bull flags are generally bullish continuation formations, and XRP’s breakthrough above the flag’s upper trendline suggests that the altcoin is set to continue its recovery.
The relative strength index is holding in the positive range at 60, indicating that market conditions still lean towards the upside.
Classic chart pattern projects $3.02 for XRP
XRP’s price action has created an inverse head-and-shoulders formation on the three-hour chart, which analysts believe indicates a possible rally to $3.
An inverse head-and-shoulders pattern (IH&S) is a bullish chart structure formed by three troughs: a lower “head” located between two higher “shoulders.”
According to technical analysis, a breakout above the neckline of this pattern could lead to a rapid price surge.
Related: Ripple-backed Evernorth nears the launch of publicly traded XRP treasury
“$XRP has formed an inverse H&S pattern,” noted analyst BlockBull in an X post displaying the altcoin’s price action on the three-hour chart, adding:
“Could $XRP Reach $3 before Wednesday’s Fed Meeting?”
The anticipated target for this pattern, determined by adding the height to the breakout point at $2.50, is $3.02, which translates to a 14% increase from the current level.
As anonymous analyst Altcoin Gordin indicated, an “absolutely perfect move up from the right shoulder” is likely to propel XRP’s price to $3 and beyond.
As reported by Cointelegraph, XRP is displaying strong bullish indicators, with Evernorth’s $1 billion accumulation and unprecedented exchange outflows stoking expectations of a surge toward $3 in November.
Declining XRP supply on exchanges
The XRP supply on exchanges has significantly decreased over the past 30 days, as shown by data from Glassnode.
The chart below illustrates that the XRP balance on exchanges fell by 1.4 billion tokens to 2.57 billion on Wednesday from 3.9 billion on September 20.
The diminished supply on exchanges indicates a reluctance to sell among holders, reinforcing XRP’s upside potential.
This sharp reduction comes from record outflows, with the XRP net position change on centralized exchanges declining by 2.78 million, the highest in history, according to Glassnode’s data.
Such outflows usually signify considerable accumulation by major holders, alleviating immediate sell-side pressure and enhancing the likelihood of XRP’s rebound to $3.
Positive 90-day CVD supports XRP bulls
Evaluating the 90-day spot taker cumulative volume delta (CVD) reveals how much control sellers have surrendered since October 14.
Data from CryptoQuant indicates that buy orders (taker buy) have reasserted dominance. This means there are more buy orders being executed in the market than sell orders.
This demonstrates sustained demand despite recent pullbacks and generally suggests that prices may recover from current levels.
CVD gauges the difference between buy and sell volume over three months. A positive CVD also reflects optimism among traders who are actively accumulating.
If CVD remains green, it suggests buyers are persistent, which could pave the way for another upward wave, similar to 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.
