XRP price could be about to rebound in the near term after forming a bullish engulfing pattern as key catalysts like falling Binance reserves and ETF inflows align. The Ripple (XRP) token was trading around $1.89 at press time, modestly above the intraday low of $1.78. A primary catalyst cited is the continued decline in XRP supply on exchanges, which has dropped to the lowest level in months. CryptoQuant data show a pronounced downward trend since peaking in October, with the supply now at its lowest level of the year.
Binance remains the largest XRP trading venue, with XRP’s volume on Friday standing at over $600 million, far exceeding Upbit’s $355 million. Declining exchange balances indicate that investors are moving their tokens to cold storage, suggesting they expect the tokens to rebound over time. XRP ETF demand remains robust, with SoSoValue data indicating spot XRP ETFs had inflows of over $68 million this week, lifting cumulative inflows to about $1.06 billion and total assets to roughly $1.14 billion. These inflows occurred while Bitcoin and Ethereum funds shed assets.
The daily timeframe chart shows XRP settling at a crucial support level this week, with the price’s low aligning with October and November nadirs. Ripple price has formed an inverse head-and-shoulders pattern, with its shoulder formed by the descending trendline that connects the highest swings since October, and a bullish engulfing candle confirming a reversal. These signals—along with the bullish engulfing pattern—are among the most common bullish reversal signs in technical analysis and support a potential near-term rally for XRP.
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