4 XRP Price Charts Predict a Potential Rally Towards $3

Multiple technical indicators suggest that XRP is poised for a rally toward $3 in the coming days, as exchange balances reach five-year lows. Here's a breakdown of the technical signals and charts supporting this potential breakout.

The four-hour chart reveals XRP forming a bull flag pattern, having broken above the upper boundary resistance at $2.63 on Wednesday.

A four-hour close above this level would set XRP on a course to the measured target of $2.92, marking a 12% rise from its current value. Bull flags are typically continuation patterns, and XRP's breakout above the upper trendline of the flag points to further price growth.

An inverse H&S is a bullish pattern, characterized by three troughs: a lower “head” between two higher “shoulders.” A breakout above the pattern's neckline could trigger a parabolic price rise.

The measured target for this formation is $3.02, representing a 14% increase from the current level.

Some analysts believe this pattern will push XRP toward $3 and beyond, citing an ideal move from the right shoulder.

XRP’s supply on exchanges has dropped significantly in the past 30 days, according to Glassnode data.

The XRP balance on exchanges decreased by 1.4 billion tokens, from 3.9 billion on September 20 to 2.57 billion on October 29. This sharp drop suggests holders are less likely to sell, reinforcing the bullish outlook.

The decline in supply is attributed to record outflows, with the XRP net position change on centralized exchanges falling by 2.78 million, the largest drop in history. Such outflows typically indicate substantial accumulation by large holders, reducing immediate selling pressure.

The 90-day spot taker cumulative volume delta (CVD) reveals a shift in market control since October 14, with buy orders dominating the market.

CryptoQuant’s data indicates that taker buy volume has become dominant again, suggesting ongoing demand for XRP despite recent pullbacks. Positive CVD typically signals sustained buying activity, which could lead to another upward movement similar to previous rallies.

This data supports the idea of a continued rally toward higher price levels for XRP, as buyers show strong commitment.