XRP Coils At Support: Refusal To Drop Hints At Potential Reversal — Here’s Why
Overview
XRP is exhibiting signs of resilience as it hovers around a significant support level, resisting further downward movement. Despite facing pressure in the broader cryptocurrency market, XRP’s stability at this level indicates a potential shift in momentum.
Current Price Action
XRP is demonstrating a refusal to decline further, suggesting a strong support level is in play. Crypto analyst Henry has highlighted the token’s strength at this critical juncture, noting that XRP has shown resilience after a period of decline. The price action around this support level has been consistent, with previous tests being respected, indicating a solid foundation.
Key Support Level
The support level that XRP is currently coiling around has been tested multiple times, showing a clear rejection of lower prices. The current bounce in price feels distinct, with a more organized structure and a calmer market sentiment. This shift in price action indicates a potential reversal might be imminent.
Market Developments
In addition to this technical setup, significant market developments are underway. Bloomberg has reported that Vanguard, a major asset management firm, will begin allowing clients to access XRP ETFs. This move could have implications for XRP’s market presence and liquidity.
Bullish Signals
The recent trend in XRP’s price action reveals a three-drive pattern, which has historically preceded major reversals in the cryptocurrency market. This pattern suggests that a shift in trend may be occurring, as confirmed by trader Dom, who noted the formation of a higher low.
However, for a sustained upward movement, bulls need to reclaim the monthly RVWAP around a specified level. Holding above this level could signal a structural shift, potentially leading to a continuation rally.
Exchange Supply Dynamics
The co-founder of Tedlabsio, Niels, has pointed out a significant bullish signal in XRP’s market cycle. Over the past two months, approximately 45% of XRP’s supply held on exchanges has been withdrawn. This sharp decrease in exchange supply typically indicates that smart money is accumulating the asset, reducing selling pressure and setting the stage for potential price increases.
Impact on the crypto market
- XRP’s stability at a key support level may indicate a potential reversal in sentiment.
- The reported withdrawal of XRP from exchanges suggests bullish accumulation by investors.
- The introduction of XRP ETFs by a major asset manager could enhance market accessibility and interest.
- The formation of a higher low and the three-drive pattern may signal a trend change, attracting further attention from traders.
- Overall market dynamics could shift if XRP successfully maintains its support and breaks key levels.
Updated: 12/4/2025, 12:55:15 PM
