XRP Price Prediction: Technical and On-Chain Signals Point to $2.80 Target
XRP (XRP) has experienced a significant recovery, surging nearly 21% from its lows below $2 on November 21, as multiple technical and on-chain signals indicate a potential target of $2.80. This upward trend is supported by various factors, including a declining offer on stock exchanges, positive spot taker Cumulative Volume Delta (CVD), and sustained XRP ETF inflows, which suggest confidence among buyers.
The four-hour chart shows XRP price trading with a bull pennant, a strong continuation pattern that suggests a potential upward move once the pattern is confirmed. According to analyst Crypto Batman, “$XRP is looking really solid here,” with the cryptocurrency reclaiming its previous support and breaking out of a classic bullish pennant. A four-hour candlestick close above the pennant’s upper trendline at $2.22 could pave the way for XRP to rise toward the bull pennant target at $2.80, representing a 25% increase from the current price.
XRP’s V-Shaped Recovery Pattern and Bullish Indicators
XRP’s price action since early November forms a V-shaped recovery chart pattern on the daily chart. The XRP/USD pair is now trading below a key supply zone between $2.30 and $2.63, where all major simple moving averages (SMAs) are located. Bulls need to push the price above this area to increase the chances of the price rising to the neckline at $2.70 and completing the V-shaped pattern, which would mean a price increase of 23% from current levels.
The Moving Average Convergence Divergence (MACD) indicator signals a bullish cross and stronger bullish momentum, with analyst Terra Army noting that “XRP’s momentum is slowly returning” as the MACD turns green and the Relative Strength Index (RSI) recovers. If XRP recaptures the $2.30 to $2.40 range with volume, it could lead to an exciting price movement.
Declining XRP Supply on Exchanges and Spot Taker CVD
According to data from Glassnode, there has been a significant decline in XRP supply on exchanges over the past 60 days, with the XRP balance on exchanges falling by more than 45% to 2.6 billion tokens. This decline indicates a lack of intention from holders to sell, reinforcing the upside potential for XRP. The XRP spot taker CVD shows that taker buy orders have become dominant again, with a positive CVD indicating a recovery in demand and buyers taking control.
The continued demand for XRP can be attributed to US-based spot XRP exchange-traded funds (ETFs) that have recorded nine consecutive days of inflows since their launch, highlighting institutional demand. The 21Shares spot XRP ETF is expected to go live on Monday, which could provide even more tailwind to the XRP price.
XRP Price Prediction and Conclusion
Considering the various technical and on-chain signals, XRP’s price is likely to continue its upward trend, with a potential target of $2.80. The declining XRP supply on exchanges, positive spot taker CVD, and sustained XRP ETF inflows all support this prediction. However, it is essential to conduct thorough research and consider multiple sources before making any investment decisions.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making their decision. For more information, visit https://cointelegraph.com/news/five-xrp-charts-suggest-short-term-price-rally-2-80.
