XRP price has consolidated above the $3.1 mark on Sunday, after topping out at $3.3 earlier in the week. Amid the market consolidation phase XRP traders have been spotted making strategic moves that could potentially trigger another major breakout, in the near-term.
XRP Holds $3.1 Support as Traders Anticipate Fresh Bullish Triggers
Ripple (XRP) price action has been relatively muted in recent days as crypto markets digest developments from President Trump’s first week in the White House.
The launch of Trump’s memecoins has drawn significant investor attention, while discussions about the U.S. adopting Bitcoin as a strategic reserve currency pushed Bitcoin prices above $105,000 on Sunday. This surge in Bitcoin dominance, coupled with memecoins dominating social sentiment, has limited traction for mega-cap altcoins like XRP.
Ripple (XRP) Price Action |Source: TradingView
The XRP price chart above reveals that XRP is consolidating within a tight range after a significant breakout earlier this month. The consolidation zone spans between $3.3695 and $2.8277, reflecting a stalemate between buyers and sellers.
This breakout, observed in the week leading up to Trump’s inauguration, coincided with the launch of the RLUSD stablecoin, which provided a notable liquidity boost. Ripple executives’ attendance at a pre-inauguration dinner at Mar-a-Lago further strengthened ties between XRP and the new administration, driving bullish sentiment.
The current consolidation phase could act as a potential launchpad for further gains if market sentiment remains positive. A break above the $3.3695 resistance could resume the rally, while failure to hold $2.8277 might signal a retracement.
XRP ETF Speculations Could Spark $4 Breakout as Binance Outflows hit $450M
Ripple (XRP) may require another significant catalyst to break above the $4 threshold. Recent speculations surrounding altcoin ETF approvals, including fresh filings in the first week of Trump’s presidency, have fueled optimism. Reports indicate that [insert company] is progressing with an XRP Spot ETF, further lifting sentiment.
While XRP’s price action remains relatively stagnant, CryptoQuant’s on-chain exchange reserves data reveals strategic movements by traders on Binance. Savvy investors appear to be positioning for long-term gains, anticipating bullish triggers like an XRP ETF approval.
Ripple (XRP) Exchange Reserves vs. Price | Source: CryptoQuant
As of January 16, traders on Binance held a cumulative balance of 3.04 billion XRP in exchange wallets. Since then, persistent outflows have reduced the balance to 2.89 billion XRP as of January 26. This 10-day outflow of 150 million XRP, valued at approximately $450 million, has contributed to a tightening of immediate market supply. This supply contraction has helped XRP maintain its support above $3 despite heightened altcoin market volatility during the first week of Trump’s presidency.
Historically, large outflows from exchange wallets indicate traders are moving coins into cold storage, signaling long-term bullish expectations. With speculations around altcoin ETF approvals and institutional interest from the new Bitwise Dogecoin ETF filing, it’s possible that institutional players are acquiring XRP from retail traders, driving these substantial Binance outflows.
XRP Price Forecast: More consolidation ahead before $4 breakout
XRP’s price forecast hinges on its performance within a crucial consolidation range between $2.8 and $3.4, a zone that has defined its recent trading activity. The Ichimoku Span Intersection (ISI) pinpoints critical levels, with $2.9 acting as support and $3.6 as resistance. This tight trading range has left the market looking for directional cues, as mixed technical signals suggest both opportunities and risks.
TradingView‘s Moving Average Convergence Divergence (MACD) is a technical indicator also affirms this dual narrative, with its latest reading of 0.22 hinting at emerging bullish momentum. However, a minor negative divergence of -0.0043 suggests underlying fragility in the current setup.
A decisive move outside this consolidation range could dictate XRP’s trajectory in the coming weeks, making it a pivotal point for traders and investors alike.
XRP Price Forecast | XRPUSD
On the bullish side, a breakout above $3.3695, the upper boundary of the consolidation ceiling, could pave the way for a rally toward the ISI resistance at $3.5985. Should buying pressure persist, the $3.5995 ISO1 upper bound becomes a near-term target, while sustained momentum could fuel aspirations for $3.7000.
The $450 million exchange outflows, and institutional accumutation, evidenced by XRP’s rebound from the multi-month low of $2.1373, adds weight to the bullish scenario and emphasizes the potential for a $4 breakout.
Conversely, failure to maintain support above $2.8277 risks a retest of the ISI support level at $2.8679. A breach below this floor could accelerate selling pressure, potentially driving XRP toward $2.5000 and the ISO1 lower bounds near $2.1674.
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