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XRP has continued to show strong bullish momentum, evidenced by its recent bullish continuation pattern that could signal a rally above $3.00.
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As the market stabilizes, XRP’s performance is closely monitored, especially with significant outflows from exchanges indicating reduced selling pressure.
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According to COINOTAG sources, “XRP is trying to claim the $2.7740 level. If successful, then $3 will be in play,” suggesting optimistic market sentiment.
With XRP showing bullish patterns and exchange outflows decreasing selling pressure, could a price surge above $3.00 be on the horizon? Read more.
Positive Exchange Dynamics Boost XRP’s Outlook
In recent days, XRP has rallied, climbing 3.5% to reach an intraday low of $2.63 on February 17, according to data gathered from Cointelegraph Markets Pro and TradingView. Notably, after a steep 44% drop to $1.76 earlier this month, XRP has regained approximately 10% over the past week. This optimistic recovery comes as exchange flows for XRP show a shift towards negativity, which traditionally signifies decreasing selling pressure and potentially strengthens the bullish case for XRP.
Understanding XRP’s Exchange Flow Dynamics
The recent chart data indicates that XRP’s spot exchange flows turned negative on February 16 after three consecutive days of inflows. This shift may suggest that fewer coins are being sold in the market, leading to a healthier price environment. Looking at the broader trends since the November price surge of 500%, XRP’s exchange flows have remained largely negative, indicating that many investors are holding onto their positions rather than cashing out.
Furthermore, data from CryptoQuant reveals that the XRP supply on exchanges has been on a downward trajectory since mid-November 2024, coinciding with a remarkable 330% price rally. This data reaffirms the idea that buy-side demand is prevailing over sell-side pressure, which contributes positively to XRP’s market performance.
XRP Forms a Classic Cup-and-Handle Pattern
The technical analysis of XRP indicates the formation of a cup-and-handle pattern on the four-hour chart starting from February 1. This pattern typically occurs following a price drop, characterized by a gradual recovery that forms the “cup,” followed by a consolidation phase that forms the “handle.” Such patterns are often seen as precursors to significant upward moves.
Price Action and Future Resistance Levels
Currently, XRP is navigating through the handle portion of the pattern, with its price trading higher within this range and seeking to breach the neckline resistance at $2.75. Analysts are cautiously optimistic; a decisive four-hour close above this level could pave the way for further gains toward the previous highs around $2.84. Specifically, a break through this resistance could imply a substantial upward move towards the technical target of approximately $3.40, representing a solid 25% increase from current levels.
Several experienced analysts have echoed this bullish outlook. Dark Defender emphasizes that XRP must first conquer the $2.7740 level for any serious moves toward the $3 mark to materialize. In parallel, fellow analyst Kwantxbt identifies a bullish divergence on momentum indicators at the daily timeframe, suggesting further upside potential towards the $2.85 to $3.15 range.
Conclusion
In summary, XRP appears to be consolidating bullish momentum bolstered by positive exchange dynamics and a classic technical pattern that may set the stage for a breakout above $3.00. With market sentiment shifting favorably and a decrease in selling pressure, XRP’s potential for growth seems credible. Investors should closely monitor key resistance levels and exchange flow trends as indicators of XRP’s future price trajectory.
