The price of XRP has been testing investors' patience for weeks. The coin has dropped about 18% in the last month and nearly 4% in the last 24 hours. Additionally, it spent most of its time in a narrow range, making the last few weeks flat and frustrating. However, this time may be different. Two bullish signals reveal upcoming changes that could give the altcoin's price a new direction.
The last move shows something that wasn't present in previous attempts. The signal on the chart and the change in behavior of holders now indicate a rebound that may finally have enough support to sustain itself.
Bullish signals indicate that buyers are returning.
Since the end of November, the price of XRP fluctuated between $2.28 and $1.98. This range indicates that buyers and sellers were evenly split. Nevertheless, the lower side of this range has recently brought something new. The price touched the lower trend line of the symmetrical triangle. A symmetrical triangle forms when buyers and sellers slow down at the same pace, which often signals an aggressive move in one direction.
The first strong clue comes from the volume indicator. Between December 6 and 11, the price reached a lower low, but the On-Balance Volume (OBV) reached a higher low.
OBV measures the flow of volume during coin price movements. When the price drops but OBV rises, it indicates hidden accumulation. This usually shows that someone is buying the dips, even if the chart looks weak. This is the first sign that a bounce attempt may occur.
The combination of a bullish signal from the chart, including triangle support and OBV divergence, indicates that early buying pressure is returning.
Will this time the price bounce finally hold?
A clean bounce, if it occurs, also requires lower selling pressure. Bullish signals for XRP are not limited to just the technical chart. Historically, long-term holders are often the strongest group in any coin. Recently, they sharply reduced their selling. On December 3, they withdrew 101,083,156 XRP. By December 10, this number had fallen to 51,157,301 XRP. This represents a reduction of about 49%. They are still net sellers, but the selling pressure is decreasing at a noticeable rate.
Meanwhile, the most interesting third clue comes from the fastest changing wallets. These short-term XRP holders often sell at every rebound, killing momentum. However, this time they are limiting supply. This is visible through the HODL Waves metric, which shows supply held based on the cohort age.
In this context, the 24-hour cohort had 1.89% of the supply on December 2. By December 10, this percentage had dropped to just 0.22%.
The cohort from one day to one week peaked at 3.88% on December 4 and fell to 1.24% on December 10. This eliminates speculative pressure, which usually weakens rebounds.
When long-term holders sell less, and very short-term holders (speculative money) leave the market, it allows for price rebounds to be maintained.
Important XRP price levels to watch.
XRP traded near $2.00 and remains within a broader range of $2.28 to $1.98. For the bounce to gain strength, XRP must first break the $2.17 level. This level, about 8.37% higher, is a critical point that determines the next impulse. A daily close above this level increases the chances of testing the upper boundary of the range.
If bullish altcoin signals converge in time, a move above $2.28 would confirm a breakout. This would allow the price of XRP to finally head higher.
On the other hand, the risk still hangs by a thread. A daily candle closed below the $1.98 level weakens the entire bullish setup. If this happens, the altcoin price chart indicates a path to the $1.88 level. This is another key support that could save XRP from deeper declines.
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