XRP has found itself trapped in a narrow trading range over the past several days, pulling back from its monthly peak of $3.65 reached earlier this month. The digital asset has shed approximately 14% since that high and currently hovers around $3.13, managing only a modest 5% weekly gain.
This recent correction has left many traders taking a wait-and-see approach. However, emerging data suggests that buying pressure may be quietly building beneath the surface, potentially setting the stage for an upward move if key technical conditions fall into place.
Chaikin Money Flow Signals Need Confirmation
Market participants should keep a close eye on the Chaikin Money Flow indicator, which measures capital movement by analyzing both price movements and trading volumes. Between July 20 and July 26, XRP’s CMF established a higher low pattern even as prices declined from $3.60 to $3.13.
This technical divergence indicates that institutional-sized wallets were accumulating during the dip, continuing to build positions while retail sentiment turned bearish. The CMF currently reads around 0.15, but bulls need to see a decisive break above this threshold to confirm strengthening momentum.
Put simply, sophisticated investors appear to be accumulating, though they haven’t yet shown the conviction needed to drive XRP beyond its current trading boundaries.
Very rare.
Within the world of financial markets.
To see any market +100% in 2 weeks ENGULFING 3yrs of selling and sideways movement.
Shorts are dead.
Mkt suggests structural change afoot.#XRP now $65b asset.
Didn't happen by mistake.@Ripple "made in USA."#DAE 🚀 🚀 pic.twitter.com/Q78oAn3bHe
— Dan Tapiero (@DTAPCAP) November 16, 2024
Exchange inflow data reveals that XRP deposits have remained relatively quiet throughout July. The most significant spike occurred on July 11 when more than 220 million XRP tokens flowed onto trading platforms. Since that date, inflows have generally stayed at minimal levels, with July 29 data showing just 9.7 million XRP moving to exchanges while the token traded near $3.12.
Reduced exchange inflows typically signal market stability, suggesting that major holders aren’t preparing to liquidate their positions. When inflows stay suppressed over extended periods, it often indicates diminishing sell-side pressure on exchanges.
This dynamic allows fresh buying interest to have more pronounced effects on price action. The trend complements the cautiously positive Chaikin Money Flow readings, demonstrating that while accumulation remains tentative, selling pressure has also decreased substantially.
Technical Pattern Suggests Upward Potential
Chart analysis using a 2-day timeframe reveals XRP developing an ascending triangle formation, a typically bullish configuration where successive higher lows create pressure against a flat resistance level. This longer timeframe helps filter out the noise from range-bound price action.
Although XRP currently trades in the middle portion of this pattern, Fibonacci analysis highlights critical levels that could determine the next major move. A clean breakout above $3.24 might catalyze rapid movement toward the $3.65 resistance zone, with limited obstacles beyond that point as the token would enter price discovery territory.
Conversely, a breakdown below the $2.95-$2.99 support cluster would invalidate the near-term bullish scenario and potentially trigger further downside pressure.
Broader Market Implications
The combination of muted exchange inflows and cautious institutional accumulation suggests XRP may face continued sideways action in the near term. However, the prevailing negative sentiment could intensify if the token fails to break above key resistance levels soon.
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