Is a mass breakout coming?

An interesting indicator, which has been mostly bearish over the past few months, has finally given the green light, suggesting further gains may be ahead.

XRP noted a slight rebound over the past week as the bulls stepped in with steady buying pressure. A strong surge pushed the crypto asset towards the $1.50 area around mid-week before the momentum cooled. Sellers tried to cap their gains. After the pullback, it stabilized around $1.43.

New on-chain data now depicts a strengthening bullish reversal narrative.

Small Group Setup Forms

XRP appears to be undergoing a structural shift from a downtrend to an uptrend, according to the latest findings from crypto analyst Ali Martinez. On the daily chart, Martinez noted that the SuperTrend indicator issued a buy signal for the first time since January. This reversal points to an easing of selling pressure and a potential broader trend reversal after months of sustained sell signals.

XRP is now facing major resistance at $1.55, where the crypto asset has repeatedly struggled to rise above. A sharp daily close above this level could trigger a relief rally, after which it would target another key resistance at $1.90.

Meanwhile, on lower timeframes, a symmetrical triangle has formed, which compresses prices into a narrow range. This essentially indicates a potential move of 35%, according to analyst estimates.

Additionally, large holders are also active, as Santiment data shows that whales have accumulated around 360 million XRP over the past week. Martinez added that the supply is being withdrawn from exchanges, which further validates the bullish setup. It is important to note that the structure remains valid as long as XRP holds support at $1.30, as failing to maintain this level would weaken the bullish outlook and keep XRP trapped in consolidation.

Stable institutional inflow

On the institutional side, XRP ETF spot flows tracked by SoSoValue have shown seven consecutive days of net inflows. This is the longest streak of consecutive inflows since late February, when similar buying activity was last seen.

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Data shows that on April 20 alone, US XRP spot ETFs saw a daily net inflow of $3 million. The total net assets linked to these XRP ETFs now stand at approximately $1.08 billion.