XRP price slowly forms a rare pattern: is a rebound coming?

The XRP price erased some of the gains made in November as the cryptocurrency’s sell-off continued.

Ripple (XRP) fell 26% from this month’s high to $2.14 on Monday, meaning it has entered a bear market.

XRP’s decline occurred as its social sentiment score and futures open interest continued to decline. Futures open interest fell to $1.89 billion on Monday from a year-to-date high of $4.29 billion, according to CoinGlass.

Ripple’s daily volume has also dropped over the past few weeks as momentum has waned. Its 24-hour volume was over $10 billion; this was much lower than a few weeks ago.

Still, the XRP price has some important fundamentals that could push it higher in the near term. The most important metric is that many large shareholders are not selling. According to Santiment, XRP has more than 5.75 million holders; This is up from October’s low of 5.36 million. Similarly, the number of active addresses also dropped slightly during this sell-off.

Number of XRP holders and active addresses | Source: Santiment

There are also more catalysts ahead for XRP. CoinMarketCap data shows that the market cap of Ripple USD stablecoin rose to over $53 million in the week after its launch. Still, CMC warns that its holdings in the RLUSD stablecoin are not verified.

Moreover, the chances of the Securities and Exchange Commission approving a spot XRP ETF in 2025 are also increasing. Donald Trump has promised to be a more crypto-friendly president and has already started recruiting members of his crypto council. A spot ETF would likely create more excitement for the cryptocurrency and its demand.

XRP price analysis as a bullish pattern creates XRP chart | Source: crypto.news

The daily chart shows that Ripple price is slowly forming a bullish pennant chart pattern. This is a popular continuation sign consisting of a vertical flagpole and a currently forming triangular pattern.

The bottom of the triangle connects the low points on December 10 and 20. Its upper part touches the highest swings on December 3 and 17. There are signs that this consolidation will continue for a while.

XRP price has also moved above the 50-day moving average and is at the weakness, stop and reversal point of the Murrey Math Lines. Therefore, the cryptocurrency will likely trend upward as bulls target the year-to-date high of $2.90.