The price of XRP is currently hovering around $1.09, displaying signs of a bullish trend as a classic reversal pattern emerges. The selling volume has diminished, coinciding with Bitcoin's resilience, which greatly influences XRP's performance.

Why This Matters for Investors

This development hints at a promising double-digit breakout for XRP, but its future remains tethered to the actions of Bitcoin. Understanding this connection is crucial, as potential movements in XRP are likely to mimic Bitcoin's volatility.

  • XRP price is around $1.09.
  • Recent selling volume has declined since July 6.
  • Bitcoin has experienced a 6.7% increase over the past week.
  • XRP’s correlation with Bitcoin stands at 0.84 over the last 30 days.

Technical Setup Suggests Potential Upswing

On the daily chart, XRP is forming a cup and handle pattern, characterized by a rounded base followed by a slight dip. This pattern has been developing since June 22, with the handle formation currently in progress. Should it conclude successfully, this could indicate a price increase of approximately 16%.

Moreover, a closer examination of trading volume shows a gradual reduction in selling pressure since the beginning of July, signifying a likely shift in sentiment among traders.

Investor Patterns Indicate Confidence

Analysis of on-chain metrics reveals that long-term holders are accumulating XRP. The HODL Waves metric shows that the one-to-two-year holding period's share of supply has escalated from 12.80% to 15.33% since the start of July. Notably, this accumulation has occurred while the XRP price remained largely stable.

Exchange data supports this trend, as there has been a net outflow of XRP from exchanges, signaling increased accumulation among holders. A temporary uptick in inflows earlier this month indicated some selling activity, but overall trends suggest a build-up of supply with dwindling selling pressure.

What to Watch Going Forward

As XRP nears critical price levels, traders will want to keep an eye on specific markers. Support currently stands at $1.08, with a breach above $1.12 needed to finalize the handle. The pivotal test awaits at $1.19, identified as the 0.618 Fibonacci level, which could dictate short-term price actions.

Disclaimer: This material is for informational purposes only and should not be considered financial advice.