 ▲ XRP |
XRP is signaling the possibility of an explosive rally toward $2.55, fueled by an unusual convergence of technical indicators and a decline in exchange reserves.
Cointelegraph reported on March 13 (local time) that XRP is trading above $1.40, preparing for a strong bullish breakout supported by multiple positive technical indicators and on-chain data. In particular, the Bollinger Bands, which measure price volatility and momentum, have contracted to their narrowest range in eight months, suggesting that a significant price movement may occur soon. A similar Bollinger Band contraction in July 2025 was followed by a roughly 60% surge in XRP’s price, marking a multi-year high and raising investor expectations.
Chart analysis shows that XRP is currently forming a falling wedge pattern, with a projected target price of $2.55. Analysts note that to confirm a long-term trend reversal, XRP must break through and hold above the strong resistance zone between $1.73 and $2.00. If the current bullish momentum persists and surpasses this resistance level, the upward trajectory toward the technical target of $2.55 is expected to gain traction.
The continued decline in circulating supply on exchanges is also creating favorable conditions for price appreciation. As of the 13th, XRP reserves on exchanges have fallen to 12.8 billion XRP, the lowest level since May 2021. The decrease in exchange balances indicates that large holders are moving assets to private wallets or cold storage, opting for long-term holding. As selling pressure eases, the market’s supply-demand imbalance deepens, increasing the likelihood of a short-term rebound.
However, stagnating inflows into spot XRP ETFs are considered a variable that could slow the pace of price gains. Spot XRP ETFs have recorded outflows for five consecutive days, with total outflows reaching $50.8 million. This temporary withdrawal of institutional funds may act as a constraint on an aggressive market rally, warranting caution.
XRP has reached a critical price inflection point as the convergence of technical indicators aligns with on-chain signs of accumulation. The Bollinger Bands nearing a critical threshold and attempts to break out of the falling wedge pattern will serve as key indicators determining the market’s direction. Investors are closely monitoring whether XRP can break through resistance levels, along with shifts in institutional fund flows, to shape their response strategies.
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