XRP’s Price: The Last Stand?

The bi-weekly TD Sequential, that most enigmatic of indicators, has just produced a macro buy signal-a development that, much like a sudden rainstorm, often heralds a change in the weather of the market. 🌧️

After enduring months of lower highs and the relentless pressure of sellers, XRP‘s price finally slowed its descent, as if exhaling a long-held breath. Momentum, once a relentless beast, now hesitates, and volatility, that fickle companion, begins to shrink. Perhaps the sellers, having grown weary, have found their resolve faltering. 😅

Higher-timeframe signals, like a distant lighthouse, filter out the cacophony of short-term noise, their relevance growing clearer with each passing tide. 🏴‍☠️

Yet, the TD buy, though a notable event, does not act alone. It merely sets the stage, suggesting that the downward momentum may have reached its zenith-though one must wonder if it’s a peak or merely a plateau. 🤔

In such a scenario, risk begins to tilt, like a pendulum, with upside reactions now needing less force than before, provided the stars align-or, in this case, the other confirmations follow. ⚖️

Descending triangle break reshapes XRP’s structure

The descending triangle, that most stubborn of formations, has finally broken, reshaping XRP’s structure with the grace of a dancer on ice. Each dip into the $1.80-$1.85 zone was met with the swift arrival of buyers, a dance of absorption rather than panic. 🎭

Each dip into that area attracted buyers quickly, limiting downside continuation. That behavior reflected absorption rather than panic. 🧠

As the price compressed towards the apex, pressure built naturally. Eventually, buyers forced a breakout. This move shifts focus towards $2.20 – A key reaction level where sellers previously controlled the price. 🧨

Acceptance above that zone would expose $2.60-$2.67, a former range support that now acts as resistance. Above that area, the $3-level stands as the next major upside objective. 💸

However, failure to hold above $1.80 would weaken the breakout narrative and reopen downside risk. 🧨

ETF inflows reveal steady institutional accumulation

At the time of writing, ETF data revealed that clients added $5.58 million worth of XRP in a single session, pushing total ETF-held assets to $1.24 billion. This accumulation occurred while the price hovered near $1.80-$1.90, not during a breakout. 🧠

That timing matters. Institutions typically scale exposure during consolidation, not momentum expansion. As a result, these inflows may be a sign of strategic positioning rather than reactive buying. 🧠

Moreover, ETF accumulation removes circulating supply without demanding immediate upside. That dynamic supports price stability first, expansion later. 💸

Additionally, these flows align with the macro TD buy signal, rather than contradict it. In its own way, institutional behavior may be reinforcing the idea that downside conviction is fading. 🧨

Spot outflows confirm supply absorption phase

Spot exchange data has seen persistent net outflows, including a recent -$7.82 million reading as XRP traded near $1.87. This trend could allude to reduced willingness to sell at press time levels. 🧨

Traders often withdraw assets when they expect lower downside risk. While outflows alone do not drive rallies, they tighten available supply. Combined with the structural support, such a dynamic shifts balance. 🧠

Sellers are now facing thinner liquidity, something that increases price sensitivity to demand. Moreover, outflows persisted even after the triangle breakout, reinforcing confidence rather than caution. 💸

Consequently, any sustained bid pressure could move the price more efficiently. In doing so, the market would absorb supply, rather than distribute it. 🧨

Rising funding rates signal growing conviction

At press time, funding rates remained elevated too, with the latest reading reaching 0.006 – Eepresenting a 94.58% hike. Traders are now paying to maintain long exposure, which is evidence of confidence. However, context remains critical. 🧨

Funding rates rose while the price consolidated near $1.85-$1.90, not during an impulsive rally. That divergence suggests positioning, rather than euphoria. 🧠

Additionally, leverage entered after the structure improved, not during a breakdown. Such a sequencing ordinarily reduces immediate fragility. 💸

Still, elevated funding introduces risk. If the price fails to hold above the breakout zone, leverage could unwind quickly. For now though, conviction is building carefully, supported by structure and flows. 🧨

Is XRP preparing for a broader recovery?

XRP is now trading at a point where technical structure, institutional flows, and derivatives positioning converge meaningfully. The macro TD buy framed the shift, the triangle breakout confirmed it, and capital flows are now supporting it. 🧨

While short-term volatility remains likely, evidence favors accumulation over distribution. If price maintains acceptance above the former triangle and holds $1.80, momentum could expand towards higher resistance zones. 💸

However, this setup does not guarantee immediate upside. Instead, it means XRP may have completed its bottoming process and entered a phase where sustained recovery will be increasingly viable. 🧠

Final Thoughts

  • Structural breakout, ETF inflows, and spot outflows suggest XRP has entered an accumulation phase. 🎭

  • But let us not forget: the market is a fickle lover, and its promises are often as fleeting as a summer breeze. 🌬️

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2026-01-02 17:46