Crypto analyst has recently sparked conversation with a bold chart based projection for XRP, centered around a classic market concept: mean reversion.

Using a monthly timeframe, the chart highlights how XRP has historically oscillated between periods of overvaluation and undervaluation, repeatedly returning to a rising mean trendline. According to the visual, XRP is currently trading below this trendline and if the pattern holds, a move back toward the mean could be the next big phase in its price action.

📊 Mean Reversion Meets On Chain Activity

But it’s not just about technicals. Analysis comes amid notable on-chain movements.

According to a report by Times Tabloid (Sept. 6), nearly 170 million XRP valued between $480M and $500M were transferred to exchanges over the past week.

📥 Exchange inflows of this size often raise red flags, as they may signal potential sell pressure in the short term. While long-term charts suggest upward movement, the immediate inflow of tokens could dampen momentum if sellers begin to offload.

⚖️ Community Reactions: Divided Sentiment Not everyone is convinced.

Some users on social media questioned the bullish outlook, arguing that only a major token burn or supply shock could realistically drive XRP back toward higher levels seen in past cycles.

Others focused less on the chart and more on the supply-side risks, noting that such large inflows onto exchanges could cap any near-term rally.

📌 Key Takeaway: Two Forces at Play The technical structure suggests XRP remains in a long-term mean reversion cycle. If history repeats, price may gradually return to align with the upward trendline.

At the same time, liquidity dynamics especially the $500M+ in tokens now sitting on exchanges create short-term uncertainty.

For traders and investors, it’s a balancing act between respecting the macro trend and staying alert to near-term market risks

💬 What do you think:

Is XRP preparing for a slow climb back to the mean, or will exchange inflows weigh it down in the short term?

#XRP #CryptoAnalysis #OnChainData #TechnicalAnalysis #MeanReversion