Chrisen Brian

According to Cointelegraph, XRP has been trading within a narrow range over the past eight days, maintaining its position just above the $2.00 support level following a marketwide recovery over the weekend. Onchain and technical data suggest that the XRP/USD pair is positioned for a potential breakout toward the $3.00 mark.

Since April 14, XRP's price has been consolidating between $2.03 and $2.13, with the daily relative strength index (RSI) remaining flat at approximately 49, indicating market indecision. Despite this sideways movement, whale activity presents a promising outlook, as onchain data reveals that large investors have capitalized on the price drop to $1.61. Notably, XRP whale addresses holding between 10 million and 100 million XRP have seen a sharp increase since April 1, according to Santiment data. Similarly, addresses holding over 1 billion XRP have steadily grown, now accounting for 39.37% of the total XRP supply, up from 37.67% at the end of March. This trend may reflect the confidence of these large investors in XRP's potential price increase, despite prevailing macroeconomic risks and uncertainties.

Additionally, XRP has experienced a notable decline in exchange reserves. The XRP balance on exchanges peaked at 3.27 billion XRP in November 2024, but currently, around 2.7 million XRP are held on exchanges. This metric has decreased by 10% over the past 30 days, despite market turbulence since early April. The price action between April 7 and April 22 has resulted in the formation of a bull flag pattern on the daily chart, with the price retesting the upper trendline of the flag at $2.10, suggesting a possible breakout. Although the price has unsuccessfully attempted to rise above this trendline multiple times in the last ten days, each retest has led to new buyers accumulating around this region. A decisive close above this trendline could enable XRP to recover from its current level and potentially break out toward the flag's technical target at $2.93 or the $3.00 psychological level, provided strong volume supports the move.

Several analysts have echoed this bullish outlook, viewing XRP's consolidation as a precursor to a significant upward move. Popular trader Dark Defender noted that XRP is retesting a key multimonth resistance line, suggesting that if this resistance is broken, the price could break out, with Wave 5 potentially driving it toward $4.00. Key levels to monitor include $2.22 and $2.75 on the upside and $1.80 and $1.61 on the downside, according to the analyst. Meanwhile, fellow trader CasiTrades indicated that the rejection at $2.24 suggests the price may sweep major support levels around $1.90 or $1.55 before XRP is ready to break out. As previously reported by Cointelegraph, Wyckoff reaccumulation and falling wedge patterns are painting a bullish target for XRP above $3.50. 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.