XRP Primed for Reversal as Key Support Holds Firm
The XRP ledger's native cryptocurrency is signaling a potential turnaround, demonstrating remarkable resilience around a critical support level. Despite a broader downturn in the crypto market, XRP has consistently defended its current price point, with signs pointing towards a significant bullish shift as bearish pressures wane and volatility compresses.
Technical Indicators Suggest a Bullish Undercurrent
According to crypto analyst Henry, XRP is "whispering loudly" at a pivotal moment, showing strength precisely where it matters most and recovering from its trendline support after a period of decline. This steadfastness is further underscored by the emergence of a "textbook 3-drive pattern" on the six-week chart, a formation that historically precedes major reversals in the cryptocurrency space. Analyst Dom notes that this pattern's translation into a higher low indicates an impending trend change. Bulls are now eyeing the monthly Realized Value Weighted Average Price (RVWAP) at $2.22; maintaining this level could ignite a rally towards the $2.50 mark. However, a slip below $2.00 could signal a less favorable end to the year. Adding to the positive sentiment, Vanguard, an $11 trillion asset manager, is reportedly enabling clients to access XRP ETFs, coinciding with robust US spot crypto ETF flows.
Exchange Balance Hints at Smart Money Accumulation
Reinforcing the bullish case, Niels, co-founder of Tedlabs.io, highlights a potent signal: a significant reduction in XRP's exchange supply. Over the past two months, approximately 45% of XRP held on exchanges has been withdrawn. This sharp drop in available supply is typically indicative of "smart money" accumulation, suggesting that large investors are moving their holdings off exchanges, thereby reducing potential selling pressure. Such a movement often precedes major price surges, implying XRP is entering a critical, yet largely unnoticed, accumulation phase.
