XRP Price Forecast: XPR Eyes Bullish Breakout as Long Liquidations Spike

XRP (XRP) has recovered from the session’s low of $1.89 to $1.95 in just a few hours, and an early buy signal has shown up in the hourly chart, favoring a bullish XRP price forecast for the weekend.

Data from CoinGlass shows that the market experienced a strong uptick in liquidations in the past 4 hours, as nearly $170 million worth of short positions were blown up as BTC recovered to $91,000 while ETH climbed above $3,000.

Total Crypto Liquidations – Source: CoinGlass

XRP has been enjoying a strong phase of accumulation that has helped it maintain a year-to-date gain (YTD) of 6%.

Wall Street’s appetite for the token seems insatiable, as data from SoSoValue shows that XRP ETFs have only seen two days of net outflows after nearly three months.

As a result, the assets under management (AUM) held in these products have climbed near $1.4 billion in a relatively short period.

Ripple USD Keeps Gaining Traction Among Enterprise Customers

Ripple has also been increasing its efforts to grow its ecosystem. The launch of Ripple USD (RLUSD), the network’s native stablecoin, has been critical to achieve this goal.

Ripple USD (RLUSD) Market Cap – Source: CoinMarketCap

This stable asset has grown its market cap from $50 million to $1.3 billion in just a year, reflecting rapid adoption as Ripple continues to secure key licenses in countries like the United States, Dubai, the United Arab Emirates, and more.

In addition, the network’s stablecoin was recently selected by Securitize to handle off-ramp payments for its BUIDL fund redemptions.

As the XRP Ledger’s ecosystem keeps growing, institutional adoption of this blockchain will continue to rise, with a primary use case that is focused on serving enterprise-grade customers. This supports a bullish outlook for XRP at a point when America is welcoming crypto solutions with open arms.

XRP Experiences Strong Demand at $1.90

Heading to the charts, the 4-hour chart sent a sell signal last Sunday that yielded a 6% return in just a couple of days.

XRP/USD 4H Chart (Binance) – Source: TradingView

However, the trend seems to have reversed as XRP hit a strong area of support at around $1.90. This level was once again confirmed as highly relevant for market participants during today’s session, causing a spike in the price during the American session.

The Relative Strength Index (RSI) has also been on an uptrend, indicating that bearish momentum could be decelerating. If the price breaks above $1.95, that would mean a confirmed reversal of XRP’s bearish structure, which could lead to the beginning of the token’s next leg up.

This would also confirm a breakout of the falling wedge shown in the chart – a price compression pattern that often precedes a reversal as well.

In contrast, if the token breaks below $1.90, it could fall to $1.83 at least, meaning a 6% downside risk.

We are seeing some early signs of a rejection in this time frame, but it is still too early to tell if this will lead to a reversal.

Buy Signals Pile Up in the Hourly Chart – Are Whales Accumulating Ahead of Breakout?

Heading to the hourly chart. There have been four consecutive buy signals. However, the first two were followed by a strong drop. As we have explained in previous articles, this system flags decisional candles at key levels.

XRP/USD 1H Chart (Binance) – Source: TradingView

Since XRP had just hit a key resistance, these signals were low-probability setups. However, the last two have come up as XRP bounced off a key support at $1.88. This increases the odds of a positive outcome.

The long upper wicks seen in the last two candles that hit $1.95 confirm that the selling pressure at this level remains strong. Hence, we would need a strong breakout above this mark to ensure that these are not fake signals.

What these four candles tell us, however, is that buying interest is rising. Especially if it considers that 9 out of the last 12 signals have been “buy”.