XRP supply on exchanges declines, signaling reduced selling pressure.
Symmetrical triangle pattern hints at potential bullish breakout for XRP.
The crypto market experienced bearish momentum last week but is now seeing a gradual recovery. The market cap stands at $2.01 trillion, up 2.64%, while overall trading volume has surged by 28.83%. Bitcoin has risen 3.4%, trading at $57,145, and top altcoins are following with daily gains of 2-6%. XRP, in particular, has garnered attention as it tops watchlists.
An important indicator, the XRP supply on exchanges, has dropped to its lowest point in seven months, with only 2.58 million tokens held on trading venues, according to Santiment. This decline signals fewer assets available for immediate sale, hinting at rising self-custody among investors. As a result, reduced selling pressure could point to a bullish outlook for XRP.
Although XRP faced a 5% drop last week, the token’s long-term chart shows a bullish symmetrical triangle, similar to a pattern seen in 2015 that led to XRP’s breakout in 2017. Amonyx, a popular crypto analyst, highlighted this trend, sparking investor optimism for potential new highs in the coming months.
Meanwhile, on September 6, Ripple co-founder Chris Larsen made headlines by endorsing U.S. Vice President Kamala Harris for the 2024 presidential election. A letter signed by Larsen and other executives supported Harris for her commitment to easing crypto regulations.
Next Stop For XRP
Currently, XRP’s daily chart shows a 9-day Exponential Moving Average at $62,238, with a Relative Strength Index (RSI) at 46, indicating a near-oversold market. If the bullish trend continues, resistance levels at $0.5724 and $0.6006 could be tested. However, continued bearish sentiment might push the token down to $0.5039, with support at $0.4908.
XRP Price Chart, Source: Sanbase
As it approaches key resistance points, its ability to maintain momentum will be crucial for future price movements. Traders are watching closely for any signs of strength or reversal.
