XRP’s price remained flat today, March, continuing the consolidation phase that began in February. However, ongoing inflows into exchange-traded funds and declining exchange supply suggest that a rebound may be on the horizon.
Summary
- XRP price has formed a double-bottom pattern pointing to a strong rebound.
- The supply of XRP tokens on exchanges has dropped to the lowest level in years.
- Data shows that spot XRP ETF inflows have continued rising this month.
Ripple (XRP), one of the top cryptocurrencies, was trading at $1.4282 on Thursday, inside a range it has been in the past few weeks. This price is 28% above the year-to-date low of $1.1137.
American investors are still buying XRP ETFs, a sign that they expect it to rebound in the coming weeks. SoSoValue data shows that spot XRP ETFs added $4.2 million in inflows on Wednesday as the crypto market rally restarted. It was the seventh consecutive day of inflows, with the cumulative total rising to $1.26 billion.
Increased buying by American institutional investors in a time when the price is stuck in a tight range is a sign of accumulation, which often leads to a strong rebound.
Another sign of accumulation is that XRP outflows from exchanges are increasing. Data compiled by CryptoQuant shows that over 7 billion XRP tokens exited exchanges in February. The total amount of XRP tokens in exchanges has dropped to the lowest level in years.
A possible reason why investors are accumulating XRP tokens is its strong fundamentals, including the ongoing Ripple USD growth. The stablecoin has accumulated over $1.5 billion in assets, with its daily volume soaring to over $1.5 billion.
RLUSD is benefiting from the rising demand from both retail and institutional investors, a trend that may continue after its integration on Ripple Prime.
XRP price forecast: Technical analysis
The eight-hour chart shows that the XRP price has remained in a narrow range in the past few weeks.
A closer look shows that it formed a double-bottom pattern at $1.3350 and a neckline at $1.6745. This pattern normally means that short-sellers are largely uncomfortable placing short trades below that level.
The coin has moved slightly above the 50-day Exponential Moving Average. Also, the Percentage Price Oscillator has crossed the zero line, while the Relative Strength Index has jumped above 50.
Therefore, the most likely XRP price forecast is bullish, with the next key target being the neckline at $1.6638. The bullish view will become invalid if it drops below the key support level at $1.3350.
