Cryptocurrencies leaving exchanges is usually deemed bullish because they are transferred to cold storage for future purposes other than speculation.
Is XRP Witnessing Long-Term Holding Intent?
$1.7M in XRP leaving Binance hot wallet suggests that investors are taking tokens off exchanges for long-term holding, reducing sell pressure, and setting the stage for a potential bullish move due to reduced supply and increased confidence.
Therefore, XRP might be eyeing a breakout, having stagnated in the $2.10 to $2.20 zone.
Market analyst Lingrid pointed out, “The price is compressing within a narrowing structure, hinting at a potential bullish squeeze back into the 2.30–2.35 target zone. Multiple triangle breakouts in the past support a pattern of breakout-continuation behavior. A strong reclaim above 2.20 would confirm the next leg up is underway.”
At the time of this writing, XRP was up by 1.6% to trade at $2.21.
Therefore, XRP will need to hold the critical support zone of $2.20 to boost its chances of experiencing a notable leg up.
Is XRP Gearing Up for a Trend Reversal?
According to Lingrid, “XRP is forming a higher low above the green support band following a volatile consolidation period after the descending triangle breakdown.”
XRP’s higher low formation isn’t just technical jargon, it reflects a shift in market psychology.
Buyers are defending higher prices, whales are accumulating, and institutions are injecting capital.
Should XRP break and stay above the critical $2.30–2.36 range, it could embark on a strong upward trend toward the $3–5 zone, marking a bullish chapter in its 2025 trajectory.
In techincal analysis, a higher low shows that buyers are stepping in earlier than before, indicating heightened demand or confidence.
Therefore, if XRP forms a series of higher lows and higher highs, an uptrend will be in the offing.
Meanwhile, XRP’s adoption on South Korean soil continues to go through the roof after recently recording a daily trading volume of more than $95 million on crypto exchange Upbit.
What Does XRP’s Price and Volume Compression Indicate?
XRP has spent the past several months locked in a tight price and volume compression, a classic precursor to a major breakout. Here’s why this setup is attracting attention, and why a significant move may be imminent:
1. Technical Compression: Triangle & Wedge Structures
XRP has formed a well-defined symmetrical triangle extending about 334 days, squeezing price between ~$2.00 and ~$2.40.
Concurrently, a falling wedge has emerged near the same range, a bullish configuration when paired with compression.
Typically, such patterns resolve within 75–95% of their duration—placing the breakout window between early July and mid‑September 2025.
2. Dwindling Volatility = Rising Tension
Daily Bollinger Bands have narrowed sharply, reflecting compressed volatility.When volume withers and bands tighten, the ensuing breakout is often sharp—either upward or downward—depending on directional bias.
3. Derivatives Activity & On‑Chain Signals
Despite lower trading volume, swaps like XRP derivatives and options are showing increased open interest, signaling traders building positions for a move.
Spot data reveals whales accumulating; nearly 9.9% of total supply is now held in 1M–10M XRP addresses—a 65% increase since late 2024. Importantly, XRP outflows from exchanges have spiked, often a bullish harbinger.
4. Key Levels to Watch at Breakout Points
Resistance at $2.30–$2.40: A decisive daily close above $2.30 would exit both triangle and wedge patterns, unlocking the rally zone.
Upside Targets:
$2.60–$2.72: Initial Fibonacci targets post-breakout.
$3.00–$3.40: Next swing levels, capped by the January multi‑year high.
$5–$17+: EGRAG, WatersAbove, and others model depth suggest moves from $5–$17—even $27—if momentum accelerates.
Support at $2.03–$2.10: Holds pattern validity; a drop below risks a pullback toward $1.70–$1.90.
Conclusion
XRP’s price and volume compression is not random, it’s a textbook setup for a major breakout.
With technicals aligning, whales stacking, and catalysts brewing, the next few weeks could mark the beginning of a powerful trend.
Should XRP decisively close and hold above $2.30–$2.40, then a bull run will be imminent for the 4th-largest cryptocurrency based on market capitalization with a hodling trend already gaining steam.
