What to Know:
- Technical indicators, including bull pennant formations and V-shaped recovery patterns, suggest a potential XRP price target of $2.80.
- On-chain data reveals a significant decrease in XRP supply on exchanges, signaling reduced selling pressure and increased holder conviction.
- Consistent inflows into XRP ETFs and positive spot taker CVD data reflect sustained buyer demand and institutional interest in XRP.
XRP is showing signs of a potential rally, fueled by a confluence of technical, on-chain, and fundamental factors. As the digital asset landscape matures, and with the regulatory environment becoming clearer, institutional and high-net-worth investors are increasingly scrutinizing assets like XRP for strategic opportunities. The current market dynamics suggest a possible move toward $2.80, warranting a closer examination of the underlying drivers.
The four-hour chart reveals a bull pennant formation, a pattern often indicative of a strong continuation move. A decisive break above the pennant’s upper trendline, currently around $2.22, could pave the way for a 25% surge toward the $2.80 target. This technical setup is reinforced by the relative strength index (RSI), which has rebounded from oversold territory, indicating a resurgence in upward momentum. Seasoned traders often look to these patterns as signals for potential entries, but it’s crucial to remember that technical analysis is just one piece of the puzzle.
Zooming out to the daily chart, XRP has been carving out a V-shaped recovery since early November. The pair is currently navigating a key supply zone between $2.30 and $2.63, where major simple moving averages (SMAs) converge. Overcoming this resistance could propel the price toward the neckline of the V-shaped pattern at $2.70. The moving average convergence divergence (MACD) indicator further supports this bullish outlook, signaling a potential bullish crossover and strengthening upward momentum. These longer-term patterns often appeal to institutional investors looking for confirmation of sustained trends.
On-chain data from Glassnode reveals a significant decline in XRP supply on exchanges. Over the past 60 days, the XRP balance on exchanges has plummeted by over 45%, from 3.95 billion to 2.6 billion tokens. This exodus from exchanges suggests that holders are less inclined to sell, a sentiment often associated with long-term conviction. In traditional markets, a similar reduction in available supply often precedes a price appreciation, as scarcity can drive demand.
Analyzing the 90-day spot taker cumulative volume delta (CVD) provides further insights into buyer demand. The CVD measures the difference between buy and sell volume over a three-month period. A positive CVD, indicated by green bars, signals a resurgence in demand, with buyers taking control. Sustained positive CVD suggests that buyers are not backing down, potentially setting the stage for another leg upward, mirroring historical recovery patterns. This is a key metric for gauging the strength and sustainability of the current rally.
ð¨ UPDATE: Binanceâs XRP reserves have fallen to about 2.7B, one of the lowest ever, as steady outflows show investors pulling tokens off the exchange. pic.twitter.com/qm3yOQ2T6k
â Cointelegraph (@Cointelegraph) November 27, 2025
The introduction of spot XRP ETFs in the U.S. has further fueled demand, attracting significant investor interest. These ETFs have recorded nine consecutive days of inflows since their launch, underscoring institutional appetite for XRP exposure. As of Thursday, U.S.-based XRP ETFs added $2.81 million, bringing cumulative inflows to $643 million and total net assets to over $767 million, according to SoSoValue data. The anticipated launch of the 21Shares spot XRP ETF on Monday, coupled with pending ETF approvals, may provide additional tailwinds for XRP’s price. The ETF effect, as seen with Bitcoin, can significantly impact an asset’s price trajectory and market structure.
JUST IN: ðºð¸ 21Shares spot $XRP ETF will go live on Monday.
Bullish for XRP ð pic.twitter.com/ke7hH8VnRO
â Ash Crypto (@AshCrypto) November 28, 2025
In summary, XRP’s potential rally toward $2.80 is supported by a confluence of technical bullish patterns, decreasing exchange supply, positive spot taker CVD, and sustained ETF inflows. While these indicators paint a promising picture, investors should exercise caution and conduct thorough due diligence. The digital asset market remains inherently volatile, and unforeseen events can quickly alter market dynamics. As XRP navigates this potential upswing, its performance will be closely watched by institutional and high-net-worth investors seeking to capitalize on emerging opportunities in the evolving digital asset landscape.
Source: Original article
