Recent technical analysis suggests that XRP is poised for a substantial price surge, potentially hitting the $3 mark in the coming weeks. Factors contributing to this optimistic outlook include declining exchange reserves, rising on-chain demand, and increasing institutional involvement in the cryptocurrency market. Analysts cite bull flag breakout patterns, inverse head-and-shoulders setups, record outflows from exchanges, and positive trading volume as key indicators of this bullish momentum.
Technical analysis reveals that XRP has recently validated a classic bull flag pattern on its four-hour chart. After breaking above resistance at $2.63 on Wednesday, the price could continue to rise, potentially reaching $2.97 or even more. The relative strength index (RSI) remains healthy at 60, further reinforcing the bullish outlook.
Additionally, XRP has formed an inverse head-and-shoulders pattern on its three-hour chart, a bullish indicator suggesting a possible surge to $3.00 or beyond. The pattern’s measured target of $3.02 indicates a 14% upside potential from current levels.
These positive signals come amid institutional activity and record outflows from exchanges. The decline in XRP held on centralized exchanges, dropping by approximately 1.4 billion tokens over the last month, suggests that investors are holding XRP rather than selling it, fueling speculation about a price rally.
The increase in buying pressure and decreasing supply is evident in the positive change of the 90-day spot CVD (cumulative volume delta). This signifies sustained demand for XRP, further reinforcing the bullish outlook. As more traders enter the market, the price could accelerate towards its target of $3 or beyond.
Overall, these factors suggest a sustained upward trend for XRP in the near term. Analysts predict a substantial price movement toward the $3 mark as crypto markets evolve.