At present, XRP is trading at $3.04, marking a decline of 2.2% over the last 24 hours. Despite this recent downturn, it has shown some resilience, displaying an increase of 5.8% over the past week. However, on a longer-term scale, XRP’s performance has weakened, revealing a 1.6% drop in value over the past month, indicating a somewhat flat to weak month-on-month trend.
Recent charts and on-chain indicators point towards a potential dip in price, which some analysts suggest might not be entirely unfavorable. A correction at this juncture could pave the way for what analysts identify as one of XRP’s most bullish patterns, contingent on certain price levels being maintained.
A notable red flag appears in the form of XRP’s taker buy-sell ratio. This metric serves as an indicator of whether aggressive buyers or sellers are dominating the futures market. A ratio above 1 suggests buyer dominance, while a figure below that indicates seller control. As of September 14, the ratio plummeted to 0.84, the lowest level recorded in a month. This indicates that for every aggressive buyer, there have been significantly more aggressive sellers, reflecting a pronounced bearish sentiment among futures traders.
Typically, when this ratio reaches a low, the price may stage a relief bounce. However, this time around, XRP’s price actually fell, reminiscent of a similar scenario in late August that saw prices decline from $2.96 to $2.75, resulting in nearly a 7% drop.
Further complicating the situation is the slowdown in spot flows. Recent data shows that Binance’s Exchange Withdrawing Transactions, a key metric indicating the number of holders transferring XRP off the exchange for long-term storage, decreased dramatically from 15,648 on September 11 to just 498 at present — a staggering 97% drop. This decline suggests a significant reduction in buy-side demand, as fewer holders seem willing to accumulate XRP at current prices.
It is worth noting that a similar fall in Binance-specific withdrawing transactions was observed on August 27, which preceded an XRP price correction culminating in a month-on-month low by September 1.
When futures traders engage in aggressive selling while spot demand diminishes concurrently, it typically leads to intensified short-term corrections. This context sets the stage for the possibility of further dips in XRP’s price before it can establish a more stable footing.
Despite the bearish undertones, XRP is forming an inverse head-and-shoulders pattern on the daily chart. Such formations often set the groundwork for substantial rallies. For this technical pattern to adhere to textbook definitions, a dip toward the $2.78 level—approximately 9% below current prices—would be needed to mirror the left shoulder. A pullback to $2.93 could also complete the right shoulder of the pattern.
Notably, the neckline of the formation hovers around $3.15, sloping upward. A daily close above this level would confirm a breakout, potentially opening up targets at $3.35.
Momentum indicators reinforce the notion of a possible dip preceding a breakout. The Relative Strength Index (RSI) indicates hidden bearish divergence, with prices recording lower highs while the RSI reflects higher highs. This divergence frequently suggests a continuation of the downtrend, correlating with XRP’s 30-day decline of 1.6%. Yet, such a continuation could also be beneficial, helping in the formation of the right shoulder necessary for a bullish reversal.
Current support levels stand at $2.99, $2.93, and $2.78. The inverse head-and-shoulders pattern remains intact if XRP rebounds before hitting the $2.78 mark. Conversely, a drop below $2.69—lower than the head of the pattern—would negate the bullish outlook and shift market sentiment to a more bearish stance.
