I’m seeing a positive shift for XRP as it’s broken back above $1.40. While the increase isn’t huge, it indicates buyers are stepping in after a period of sideways trading. Interestingly, I’ve been analyzing the order flow data over at CryptoQuant, and we’re spotting a signal suggesting this recovery might be stronger than what the price charts alone are showing. It hints at some underlying support building up.
On May 3rd, a key indicator for XRP trading on Binance – the 100-day average of its Taker Buy Sell Ratio – reached 0.9766. This is a significant level, as the indicator smooths out daily fluctuations to reveal longer-term trends. A reading close to 1.0 suggests that, over time, strong buyers and sellers have been roughly equal in their activity, indicating that people are steadily buying and holding XRP, rather than just trying to profit from quick price swings.
What makes this price movement noteworthy is the context of XRP’s recent correction. After reaching a high of $3.55 in July 2025, the price fell sharply to around $1.39 – a drop of over 60%. Interestingly, despite this decline, the average buying pressure over the last 100 days has been steadily increasing and is now at a significant level.
As a crypto investor, when I see strong buying even as prices are dropping, it tells me something interesting is happening. It’s not the typical reaction to a falling market – it suggests that certain players aren’t responding *to* the price, but are actually preparing for what they believe will be a price increase. They’re getting in *before* the move happens, which is a pretty bullish signal.
The On-Chain Signal Is Bullish. The Chart Is Not
A CryptoQuant analyst questions the idea that current market signals indicate increasing accumulation. While the 100-day average suggests growing buying pressure, recent short-term technical indicators are also signaling potential issues that need to be considered.
XRP is showing a concerning pattern called a bearish pennant right at a crucial support level. This pattern suggests the price is narrowing after a recent drop, and it often leads to a continuation of the existing downward trend. Since XRP has been falling, this pattern indicates it’s likely to continue falling as well, and the support level may not hold.
The chart shows a concerning pattern combined with a hidden bearish divergence on the RSI. This suggests that, even though the price seems steady, the underlying momentum is actually fading, and sellers are still in charge of the market.
The analyst suggests both possibilities are valid without deciding which is correct. Blockchain data indicates the price may be slowly stabilizing, with hidden buying activity increasing. However, the price chart cautions that this stabilization isn’t guaranteed, and there’s still a significant risk of a sudden price drop caused by investors closing their upward bets. This risk will remain until the price rises above a key level with strong trading volume.
XRP currently trading around $1.40 is at a critical point. There’s clear evidence of buying, but also significant risk. Whether it goes up or down depends on how the market ultimately behaves, and that’s still uncertain.
XRP Holds $1.40 As Price Compresses Beneath Key Resistance
XRP is currently trading around $1.40 after briefly falling below and then recovering this price point. However, the overall price movement appears to be stabilizing rather than trending strongly in either direction. The price has been moving sideways for a while since a sharp drop in February, fluctuating between approximately $1.30 and $1.45.
While the recent gain of $1.40 is a positive sign, it’s still too early to say if the price is truly recovering. The price remains below its 100-day and 200-day moving averages, which are acting as barriers to further gains. These barriers have stopped every attempt at a price increase, suggesting the overall trend is still downward, even though the price has stabilized somewhat in the short term.
Price swings have become much smaller. The range between highs and lows has narrowed, and trading activity has decreased since the recent sell-off. This pattern often happens before a significant price move, but it doesn’t tell us whether prices will go up or down.
As I continue to monitor the market, I’m focusing on the $1.45 to $1.50 range. If the price decisively breaks above that level, it would suggest a bullish trend and potentially lead to a move toward $1.70. However, if we fall below $1.30, it would negate the current stability and likely push the price back down toward the $1.10–$1.20 support zone.
XRP is not trending. It is coiling.
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2026-05-06 06:04