Crypto: 4 Data Points Suggest Xrp Price Bottomed At $1.12: Are Bulls Ready...

Multiple technical, onchain and exchange-traded product data points suggest $1.12 was the generational bottom for XRP. Is it time for a trend reversal?

XRP (XRP) recovered 50% to a high of $1.67 from its 15-month low of $1.12 reached on Feb. 6. While the altcoin’s intraday price of $1.43 remains more than 60% below its multi-year high of $3.66, several metrics suggest that the local low at $1.12 could be the new bottom with XRP price set for a sustained recovery.

XRP supply on exchanges has dropped to a five-year low as holders moved tokens to self-custody, possibly signaling reduced selling pressure.

Funding rates are at extreme lows, suggesting a potential bottom.

Positive spot taker CVD, and steady ETF inflows signal strong buyer and institutional demand for a rebound.

There has been a notable decline in the XRP supply held on exchanges over the past two years, as indicated by data from Glassnode. The XRP balance on exchanges dropped to 12.9 billion XRP on Tuesday, matching with levels last seen in May 2021.

A falling token balance on exchanges suggests a lack of intention to sell by holders, possibly reinforcing the future upside potential for XRP.

Additional data from CryptoQuant reveals that Binance’s XRP reserve has dropped sharply to around 2.57 billion XRP, with both the SMA(50) and SMA(100) sloping downward.

Related: XRP analysts explain why price drop below $1 ‘remains possible’

“Technically, reserves are declining while price remains near the lows,” said CryptoQuant contributor PelinayPA in a Monday Quicktake analysis.

Source: CoinTelegraph