XRP Shows Signs of Strength Amid Market Uncertainty, Rising 6.8%

XRP gained momentum on Wednesday, rising 6.8% from Monday’s low of around $2.70. The move came as traders adjusted following a sharp sell-off that shook the broader crypto market earlier in the week. Technical indicators and onchain data suggested the XRP/USD pair could be preparing for a trend reversal, with a potential rally toward $4 in play. Technical Setup Hints at Breakout Potential XRP’s price action has been consolidating within a symmetrical triangle on the daily chart, according to data from TradingView. This chart formation, which develops as price action compresses between converging support and resistance trendlines, often signals a breakout once momentum builds. In XRP’s case, an upward move above the $3 resistance line could trigger a reversal toward the triangle’s projected target of $4.08, marking a potential 42% gain. Before that target can be reached, XRP bulls will need to overcome intermediate resistance levels at $3.40 and the eight-year high of $3.66. Traders Highlight Key Support and Resistance Zones Analyst CasiTrades pointed out that XRP formed “a massive wick down to a double bottom near $2.70” on the four-hour chart. “A double bottom like this still fits within a valid Wave 2 count, as long as the price holds above $2.70,” she explained in an X post. Her analysis noted immediate downside support at $2.79, with a drop below $2.70 potentially opening the door to $2.58. On the upside, she highlighted Fibonacci extension levels pointing to $4.00 and $4.40 as the next significant resistance zones. “The market is preparing for a major trend shift,” she said. Meanwhile, crypto analyst CryptoBull suggested that XRP could rally as high as $5 in October if it breaks out of a bull flag pattern currently visible on the charts. Whale Accumulation Offers Market Support Onchain data provided further optimism for XRP’s outlook. Santiment’s Supply Distribution metric showed steady accumulation among wallets holding between 1 million and 10 million XRP. These addresses added 30 million XRP over the past two days, raising their holdings to 6.77 billion tokens—about 11% of the total circulating supply. The data indicates that large holders did not sell during Monday’s dip but instead bought more, potentially signaling confidence in higher prices ahead. By absorbing supply on declines, these whales may help establish price floors and encourage smaller investors to follow suit. Holder Behavior Reinforces Positive Sentiment Further supporting the bullish case, Glassnode data revealed that XRP’s net holder position change has been positive since late August. This accumulation trend followed weeks of profit-taking during July and early August, when XRP reached its multi-year high of $3.66. The recent activity suggests investors are positioning themselves for further upside, particularly in the $2.70 to $3.00 accumulation range. This buying interest highlights the importance of these levels as a foundation for future price moves. If bulls succeed in pushing past $3.40 and $3.66, momentum could accelerate quickly toward the $4 target zone.