The XRP price has shown remarkable strength this week, recovering from the recent market downturn. A detailed technical analysis, along with key on-chain data, suggests that the digital asset is preparing for a major trend shift, with projections pointing to a potential target of $4. The asset’s recovery was robust following a general market pullback.
Technical analysts have identified the formation of a symmetrical triangle pattern on the daily XRP price chart. This type of pattern often precedes a significant price movement. The recent price action saw XRP bounce off the lower trendline of this triangle, indicating strong buyer support at lower levels. To maintain bullish momentum, it is crucial for the price to hold above the $2.70 support level.
Beyond the charts, blockchain data reveals an encouraging trend. Supply distribution metrics show that large wallets, often referred to as “whales,” have been steadily accumulating XRP during price dips. This behavior suggests that large-scale investors are positioning for an upside, rather than liquidating their holdings. Such accumulation in the $2.70 to $3.00 range reinforces the idea that these levels are important psychological and technical support zones.
The Potential for a Sustained Rally
If the XRP price manages to decisively break the upper resistance of the symmetrical triangle, it would open the way for a significant rally. The technical target derived from the pattern’s height is set near $4, which would represent a considerable increase from current levels. However, before reaching that target, the asset will need to overcome several intermediate resistance zones, including $3.40 and the previous high near $3.66.
XRP’s ability to recover strongly, backed by both technical patterns and the confidence of large investors, sends a positive signal to the market. While volatility remains an inherent feature of crypto assets, the current market structure for the XRP price indicates a solid foundation for a potential trend shift. The future performance will depend on maintaining key support levels and overcoming upcoming resistances.
