XRP has shown resilience this week, rebounding from Monday’s market pullback with a notable surge that has boosted optimism among traders and analysts. Market watchers suggest that the cryptocurrency could be on the verge of a significant trend reversal if it holds key support levels.
Strong Rebound After Market Pullback
XRP rose 6.8 percent from Monday’s lows of around $2.70 to trade near $2.87 on Wednesday. The move came as traders adjusted to the sell-off sparked by an overleveraged crypto market. Technical charts and on-chain data both point to a potential rally, with analysts highlighting $4 as the next major milestone.
A symmetrical triangle pattern is forming on the daily chart, according to TradingView data. The price has bounced off the lower trend line, suggesting growing strength. If XRP breaks above the $3 resistance, the setup could trigger a rally to the pattern’s measured target of $4.08, which would represent a 42 percent gain from current levels.
Resistance and Support Levels in Focus
Before advancing toward $4, XRP faces stiff resistance at $3.40 and the eight-year high of $3.66. Trader and analyst CasiTrades noted that the cryptocurrency formed a “double bottom near $2.70” on the four-hour chart. She added that this remains a valid Wave 2 count as long as the price stays above $2.70.
Immediate downside support levels lie at $2.79 and $2.70, with a further floor at $2.58 if those levels fail. On the upside, Fibonacci extension levels indicate targets at $4.00 and $4.40. CasiTrades argued that the market is “preparing for a major trend shift” if these levels are surpassed.
Analysts See Potential Beyond $4
The bullish view is echoed by CryptoBull, another well-followed analyst, who believes XRP could climb even higher. He pointed to a bull flag formation that, if confirmed, might push the token to $5 in October. Such projections are feeding optimism that the cryptocurrency could soon test new highs not seen in years.
Whale Accumulation Signals Confidence
On-chain data reinforces the positive outlook. Santiment’s Supply Distribution metric shows that large holders with balances between one million and ten million tokens have steadily increased their holdings. These wallets now control 6.77 billion XRP, equivalent to 11 percent of the circulating supply, after adding 30 million tokens earlier this week.
This accumulation suggests that whales are buying dips rather than selling into weakness, which reduces selling pressure and provides a price floor. The trend also encourages retail investors to follow their lead.
Furthermore, XRP’s net holder position change has been strongly positive since 22 August. This shift followed weeks of outflows in July and early August, when profit-taking dominated after prices touched $3.66. Most of the recent accumulation occurred in the $2.70 to $3.00 range, underlining its importance as a base for future gains.
Market Preparing for Reversal
With whales continuing to accumulate and technical patterns aligning, traders believe XRP is setting up for a breakout. The combination of strong support near $2.70, steady buying by large investors, and bullish chart signals adds weight to predictions of a move toward $4 and beyond.
