XRP Poised for Rally as Eight-Month Consolidation Ends
XRP has spent over eight months trading sideways between key support and resistance levels, signaling a consolidation phase that may soon conclude. During recent sessions, XRP briefly dipped to $3.04 amid a broader $1 billion crypto selloff before rebounding to $3.08, supported by intraday high trading volumes up to 436.98 million XRP. On-chain data reveal large wallets accumulated roughly 320 million XRP (about $1 billion) over three days, reducing selling pressure. Technical analysis shows a symmetrical triangle pattern on the 4-hour chart, with former resistance now acting as support, typically preceding a breakout. Futures data indicate a 48.9% drop in XRP futures volume to $8.57 billion and a slight open interest decline to $7.88 billion, yet longs outnumber shorts by 3:1 on Binance. Option activity fell over 81% in volume and nearly 90% in open interest, reflecting muted speculative demand. Traders await confirmation of a bullish breakout that could drive prices higher, with targets cited around $7.00.
Bullish
This development is bullish. Eight months of consolidation have drawn to a close, reducing supply pressure as large wallets accumulate 320 million XRP. The symmetrical triangle pattern often precedes breakouts, and on-chain inflows suggest strong buy-side interest. Although futures and options volumes fell sharply, Binance data show long positions still outnumber shorts by 3:1. Similar long consolidation phases in mid-2024 led to rallies of over 60%. In the short term, a confirmed breach of triangle resistance could spark rapid upside moves. Over the long term, sustained institutional accumulation and technical breakout would set the stage for a new upward trend toward multi-dollar targets.