XRP Price Target: New Signals for Upsurge?

What to Know:

• XRP is showing similar signals to those seen before its surge in November 2024, including spikes in exchange inflows, shrinking USD liquidity in AMM pools, and tightening XRP liquidity.
• These signals are occurring amid broader discussions about market liquidity and the potential for significant price movements when liquidity is constrained.
• Institutional investors should monitor these liquidity metrics alongside other factors like derivatives positioning and funding rates to assess the likelihood of a substantial XRP price movement.

XRP is currently trading around $1.39, facing bearish pressure, but historical patterns suggest a potential shift. Market data reveals the emergence of setups reminiscent of the November 2024 breakout, a period that saw XRP surge dramatically. The convergence of specific market signals is catching the attention of analysts, prompting a closer look at XRP’s potential trajectory.

Exchange Inflows Rise on Binance

Large movements of XRP into exchanges, particularly Binance, are being noted as a potential precursor to a price surge. Market analyst Xaif highlighted this trend, citing data from CryptoQuant, suggesting that these inflows, often seen as bearish, could signal bullish activity. The data shows significant daily inflow spikes into Binance before and during the November 2024 rally, with inflows reaching 15.12 billion XRP on Oct. 20, 2024, and peaking around 3.616 billion XRP by Nov. 14, 2024.

These spikes preceded a period of increased volatility and upward price movement, suggesting a possible accumulation phase before a breakout.

USD Liquidity Shrinks in AMM Pools

A decrease in USD liquidity backing XRP markets is another critical factor. Thinning markets often lead to sharper price movements due to reduced support in order books. CryptoQuant data indicates that USD liquidity in AMM pools dropped before and during the November 2024 rally. Liquidity fell to between $2.5 million and $2.6 million in October 2024 and further to a range between $1.5 million and $2.5 million from early to late November 2024.

Currently, daily USD liquidity ranges between $1.9 million and $2.1 million, showing a similar contraction, which could amplify price volatility.

XRP Liquidity Continues to Tighten

The declining availability of XRP in the market is also significant. Before the previous breakout, XRP liquidity compressed similarly. Data tracking total XRP liquidity in AMM pools shows that liquidity averaged 5.8 million XRP from August to September 2024, dropping to 5 million XRP in October 2024. By November 2024, it fell sharply to 1.5 million XRP, coinciding with the rally from $0.5 to $3.4 by January 2025.

In February 2026, XRP liquidity averages 1.385 million XRP per day, indicating a continued tightening of supply.

Analyzing the Current Setup

The convergence of these signals—exchange inflow spikes, shrinking USD liquidity, and tightening XRP liquidity—mirrors the conditions preceding the November 2024 rally. Analyst Xaif suggests that if this pattern continues, XRP could potentially reach $10, a 619% increase from its current price. However, it’s crucial to consider additional factors such as derivatives positioning, funding rates, and overall market structure before making investment decisions.

The current market structure warrants careful observation. While the signals are forming, waiting for clear confirmation is advisable. Monitoring these liquidity metrics in conjunction with other market indicators will provide a more comprehensive view for institutional investors assessing XRP’s potential.

Related: Crypto Funds Show 5 Weeks of ETF Outflows

Source: Original article