Key Insights:
- XRP forms bullish inverse head-and-shoulders, targeting $2.70 breakout.
- Whale wallets increase, holding over 39% of total XRP supply.
- Active addresses surge 67.5%, signaling renewed on-chain user interest.
XRP hovered just above $2.07 on Apr. 22, holding its ground as bullish signals built up across technical and on-chain charts. Whales are buying, network activity is rising, and a popular reversal pattern suggests a 60% breakout could be around the corner.
Analysts say the structure forming on the daily chart resembles an inverse head and shoulders—a setup that often precedes upward price moves. That’s catching the attention of traders waiting for a clean breakout toward $2.70 in the short term.
XRP Pricr Analyst Flags Inverse Head-And-Shoulders Setup
Ali Martinez, a well-known technical analyst, flagged the inverse head-and-shoulders setup on Monday. His chart shows XRP consolidating in a narrowing range, with price action coiling just below a breakout neckline near $2.40.
“The pattern is there. The breakout target? Around $2.70,” Martinez wrote.
This level also lines up with previous resistance from March. If bulls reclaim that zone, momentum could push higher. A wider Fibonacci target extends up to $3.56, but most traders appear focused on the shorter-term move for now.
XRP has remained inside a symmetrical triangle since early April. Its $2.00 base has held multiple retests. The resistance trendline is tightening. A breakout above it could trigger a fast move, especially in a low liquidity environment.
Network Activity Pops as Addresses Hit 40K
According to Martinez, active addresses jumped from 27,352 to 40,366—marking a 67.50% increase in just a few days.
The move comes after a steep decline in engagement through March. Data from Santiment shows active addresses peaked around 612,000 on Mar. 19 but dropped as low as 36,000 by Apr. 17.
This latest surge may indicate a shift in sentiment. Whether it reflects renewed retail interest or coordinated large holder behavior isn’t clear, but analysts say it’s an encouraging sign as XRP heads into a potential breakout phase.
Chart Shows 60% Upside From Symmetrical Triangle Breakout
XRP price appears to be nearing the end of a symmetrical triangle structure, with price compressing between converging trendlines since early March. The pattern emerged after a five-wave Elliott sequence, with the final leg (wave 5) potentially setting up for a breakout.
The triangle’s breakout target sits near $3.30, based on the height of the pattern’s broadest range. This implies a potential 60% upside from current levels around $2.07, consistent with Fibonacci extension levels marked at 1.618—roughly $3.56.
Support held near $1.97 (wave 4 bottom), while Fibonacci retracement levels from the previous rally suggest interim resistance at $2.42 (0.5) and $2.78 (0.618). Those levels may act as checkpoints before bulls can retest the neckline at $2.70.
RSI currently reads 47.1 on the daily chart, indicating consolidation rather than overheated conditions. If bulls maintain control above $2.00 and break through $2.40 with volume, the technical structure supports a swift leg higher.
Whale Holdings Rise as Exchange Inflows Drop
Behind the scenes, large holders continue to accumulate. Santiment data shows wallets holding 10 million to 100 million XRP now control 11.83% of the supply—up from 10.91% earlier this month.
Even larger whales, those holding over 1 billion XRP, also increased their share. Their holdings climbed from 37.67% to 39.37% over the same period.
Meanwhile, exchange inflows have dropped sharply. CryptoQuant data shows daily deposits fell from 2.7 billion XRP at the start of the year to just 74 million on Monday.
Binance, the largest exchange by volume, saw the steepest decline. Analysts view this trend as a sign that long-term holders are moving funds off exchanges—potentially reducing sell pressure and supporting price stability.
Liquidations Shake Sentiment—But Bulls Still in Control
Despite the strong chart structure, some short-term traders remain hesitant. A failed breakout attempt on Monday triggered a wave of liquidations, with more long positions wiped out than shorts.
That pullback momentarily shook market confidence. But XRP’s ability to defend the $2.00 support zone suggests buyers are still in control.
If bulls can push past the $2.40 neckline, the inverse head-and-shoulders target comes into play. Martinez and others remain focused on $2.70 as the next milestone.
The Relative Strength Index (RSI) sits around 47.0, signaling neutral momentum—neither overbought nor oversold. That leaves room for a breakout if volume kicks in.
Conclusion
The pieces are falling into place for XRP, but nothing is confirmed yet.
Whale accumulation, falling exchange inflows, and a bullish chart setup are giving traders hope. At the same time, on-chain data shows some caution remains, especially after last month’s drop in network participation.
Still, with XRP consolidating near key support and resistance levels closing in, the market may not stay quiet much longer.
If buyers step up and flip resistance into support, the path toward $2.70 could open fast.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
