Is a Massive Breakout Coming?

An interesting indicator, which has been mostly bearish for the past few months has finally flashed the green light, suggest more gains might be ahead.

XRP noted a mild rebound over the past week, as bulls stepped in with steady buying pressure. A strong push lifted the crypto asset towards the $1.50 zone around mid-week before momentum cooled. Sellers attempted to cap gains. After the pullback, it stabilized around $1.43.

New on-chain data now paints a strengthening bullish reversal narrative.

Breakout Setup Forms

XRP appears to be undergoing a structural shift from a bearish to a bullish trend, according to the latest findings by crypto analyst Ali Martinez. On the daily chart, Martinez found that the SuperTrend indicator has flashed a buy signal for the first time since January. This flip points to easing selling pressure and a potential broader trend reversal after months of sustained sell signals.

XRP is now facing a major resistance at $1.55, where the crypto asset has repeatedly struggled to break higher. A clean daily close above this level could trigger a relief rally, following which it would target another key resistance of $1.90.

Meanwhile, on lower time frames, a symmetrical triangle has formed, which is compressing price into a tight range. This essentially indicates a potential 35% move, as per the analyst’s estimates.

Additionally, large holders are also active, as Santiment data shows whales accumulated about 360 million XRP over the past week. Martinez added that supply is being pulled off exchanges, which further validates the bullish setup. It is important to note that the structure remains valid as long as XRP holds support at $1.30, since a failure to hold the level would weaken the bullish outlook and keep XRP trapped in consolidation.

Steady Institutional Inflow

On the institutional side of things, spot XRP ETF flows tracked by SoSoValue showed seven consecutive days of net inflows. This is the longest straight inflow streak since late February, when similar buying activity was last seen.

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The data shows that on April 20 alone, spot US XRP ETFs recorded a daily net inflow of $3 million. Total net assets tied to these XRP ETFs now stand at about $1.08 billion.