XRP price action is currently showing signs of resilience, wrapping tightly around key support levels while battling further downside pressure. XRP has repeatedly maintained this level despite recent pressures across the broader cryptocurrency industry. With bearish momentum waning and volatility compressing, the stage could be set for a possible reversal.
Support cluster shows strength as XRP holds firm ground
XRP is reaching a point where it refuses to fall any further. Cryptocurrency analyst Henry noted on X that the token is currently whispering loudly, showing strength exactly where it matters and clearly rising from trendline support after several days of bleeding.
This level has been precisely tested, rejected, and respected, but this rebound feels different as the structure looks cleaner, the moments feel calmer, and the overall price movement appears to be under control. Whether it breaks out this time or not, there is no doubt that the setup is changing rapidly.
Adding to the momentum, Bloomberg reported that $11 trillion asset management firm Vanguard will allow clients to access its XRP ETF starting tomorrow. Meanwhile, US spot crypto ETF flows on December 1 were a solid amount of over $90 million. As a result of the setup, Henry suggested that if the market confirms this move, the next major target is around $2.20.
Looking backwards at the XRP chart over the past six weeks reveals a textbook three-drive pattern, a formation that has always preceded major reversal events in the cryptocurrency. According to Dom, a turn towards lower prices has finally formed, signaling the first sign that a trend change may be developing.
However, the bulls need to regain monthly RVWAP around $2.22, as a break above this area would trigger a major structural change and open the door for a continued rally towards the $2.50 level. The order situation is clear, so if momentum is to reverse, now is the time. Dong warns that if this pricing fails to maintain this structure and falls below $2.00, the year-end situation could worsen.
Why exchange balances are the ultimate supply indicator
Tedlabsio co-founder, trader and investor Niels noted that XRP just issued one of the strongest bullish signals seen in the current market cycle. Over the past two months, approximately 45% of the XRP supply stored on exchanges has been withdrawn and moved off trading platforms.
Such a sharp decline in exchange supply can only occur if there is a large accumulation of smart money. When the available supply on the exchange decreases, the selling pressure decreases and this is the beginning of a big move. Niels believes that XRP is entering a phase that most people are not aware of yet.
