- XRP’s exchange supply is declining, reducing selling pressure and paving the way for a potential 10% price rally toward $0.63.
- Positive on-chain metrics and recent developments in Ripple’s ecosystem support a bullish outlook for the token.
Ripple’s XRP is showing signs of bullish momentum as the supply of the token on exchanges continues to drop. The reduction in exchange-held XRP suggests a decrease in selling pressure, creating an environment where prices could see significant gains. As of now, XRP is eyeing a potential 10% increase, with a target price of $0.63 in the coming days.
Supply Decline Points to Potential Price Gains
According to data from Santiment, XRP’s supply on exchanges has steadily decreased, a trend often viewed as a bullish indicator. When fewer tokens are available on exchanges, the reduced selling pressure can drive prices higher. This trend coincides with recent positive developments for Ripple, particularly following the favorable ruling in the long-standing lawsuit with the Securities and Exchange Commission (SEC).
In the past week, XRP has recovered from previous losses, holding firm above the key support level of $0.57. On Tuesday, the token extended gains, reaching $0.5744, and is now targeting a 10.21% rally that could push it toward the $0.63 mark.
On-Chain Metrics Support a Bullish Outlook
On-chain metrics further bolster the bullish narrative for XRP. Santiment data reveals that while large wallet investors (whales) have reduced their holdings, retail traders have stepped in, accumulating more XRP. This shift in distribution highlights growing interest from smaller investors, contributing to the recent price stability and potential upward momentum.
Ripple has also made headlines with the announcement of its private beta testing for a stablecoin, RippleUSD (RUSD). Although not yet available for trading, the stablecoin’s introduction is another positive sign for the XRP ecosystem, signaling continued innovation and expansion.
Technical Analysis: Will XRP Reach $0.63?
From a technical perspective, XRP remains in a multi-month downward trend, but recent price action suggests a breakout could be on the horizon. The altcoin is currently facing resistance at the psychologically significant $0.60 level, with a key target at $0.63. The Relative Strength Index (RSI) stands at 52, indicating positive momentum and the possibility of further gains.
However, traders should remain cautious. If XRP fails to maintain its upward trajectory, it could find support within the Fair Value Gap (FVG) between $0.5888 and $0.5785, offering a safety net in the event of a pullback.
As the supply of XRP on exchanges dwindles, the stage is set for a potential 10% rally toward the $0.63 level. With retail traders accumulating and Ripple making strategic moves in the ecosystem, XRP’s outlook remains optimistic. The coming days will reveal whether the token can break through key resistance and deliver on its bullish potential.
