XRP price has formed a bullish double-bottom pattern on the daily chart. The spread of the three lines of the Bollinger Bands has narrowed this year. Ripple may surge despite the ongoing demand weakness. XRP price has gone nowhere since February as the crypto winter has escalated.
Ripple token was trading at $1.3515 on Saturday, down substantially from its all-time high of $3.65. XRP price has stalled as key network metrics struggle. Data shows that demand for the XRP token has largely evaporated during the ongoing crypto winter. For example, according to SoSoValue, spot XRP ETFs have added just $10 million in inflows this month.
While this is an improvement from last month’s $31 million outflow, it is much lower than what used to happen last year. The funds added $666 million in inflows in November and $500 million in December. They now hold $968 million in assets. The same trend is happening in the futures market, where the open interest has dropped to $2.4 billion from over $10 billion in August last year.
Similarly, the weighted funding rate has stalled, a sign of low demand in the market. CME futures demand has also stagnated. Activity on the XRP Ledger has largely dried as well. The network has a total value locked (TVL) of just $46 million, much lower than other popular chains like Cardano and Solana.
Also, early indications show that the permissioned DEX feature has not had a major impact on its activity. Ripple USD (RLUSD) growth has decelerated, with the market capitalization falling to $1.39 billion from $1.6 billion earlier this year. According to Artemis, RLUSD volume dropped to $9.1 billion in the last 30 days as the number of transactions fell to 820k.
On-chain data reveals that the XRP burn rate has tumbled to less than 100 tokens a day. The number of active addresses and transactions has also pulled back. One key reason why the XRP price may surge soon is that the token has formed a double-bottom pattern at $1.2807 and a neckline at $1.6067. A double-bottom is a common reversal pattern that sends a signal that short-sellers are afraid placing positions below the price.
The Average True Range (ATR), a common indicator that looks at the volatility, has dropped to the lowest level in over a year. Most importantly, the spread between the three lines of the Bollinger Bands has narrowed. If this happens, the initial target price will be at $1.6067, its highest point in March this year. A surge above that will point to further gains to $2.
On the other hand, a drop below the double-bottom point at $1.2800 will invalidate the bullish outlook.
XRP has formed a bullish double-bottom pattern on the daily chart, with a trough near $1.2807 and a neckline at $1.6067. The Ripple token was trading around $1.3515 on Saturday, reflecting ongoing weakness in demand within a broader crypto winter and suggesting a potential reversal if the price holds above the neckline. A double-bottom is a classic reversal signal that traders watch for signs of future upside.
The Average True Range has dropped to the lowest level in over a year, and the spread between the three lines of the Bollinger Bands has narrowed. If XRP breaks above $1.6067, the initial target is near its neckline, with a further move toward $2 if the breakout sustains. A drop below the double-bottom point at $1.2800 would invalidate the bullish outlook.
On-chain and market metrics show waning activity and demand: the XRP Ledger’s total value locked stands around $46 million, which is modest versus other chains, and RLUSD metrics reflect slower growth with a market cap near $1.39 billion and 30-day RLUSD volume around $9.1 billion across roughly 820k transactions. Futures and ETF activity also illustrate tepid demand, as open interest sits near $2.4 billion from a high above $10 billion last August, and the weighted funding rate has stalled.
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