After weeks of sideways trading and fading momentum, XRP is showing early signs of a potential rebound supported by improving volume dynamics and shifting holder behavior.
XRP has spent the past several weeks consolidating in a narrow band, frustrating traders who expected clearer direction. The token is down roughly 18% over the past month and another 4% in the last 24 hours, reflecting a period marked by hesitation and muted volatility. Price action has remained mostly confined between $2.28 and $1.98, offering little clarity on whether momentum might return.
But the latest move differs from earlier attempts. As XRP touched the lower boundary of its symmetrical triangle — a pattern that forms when buyers and sellers slow at an even pace — the chart printed a signal often associated with aggressive market moves. This retest of the trend line could be the first sign that buyers are preparing to step back in.
For this bounce to take hold, XRP still needs to break through key price levels. The first checkpoint sits at $2.17 — a level just above current trading that could reopen momentum if reclaimed on a daily close. A move above $2.28 would confirm a breakout from the broader range, exposing higher targets.
Three fresh signals hint at a rebound with real support
The first key clue comes from the volume trend. Between December 6 and December 11, XRP formed a lower low on the chart. However, the On-Balance Volume (OBV) indicator made a higher low during that same period. This type of divergence often signals hidden accumulation, where buyers begin absorbing supply even as price drifts lower.
The second signal points to a meaningful drop in selling pressure. Long-term holders, a group typically responsible for stabilizing price, have sharply reduced their selling. On December 3, they moved out over 101 million XRP. By December 10, that figure had fallen to about 51 million — a roughly 49% reduction. They remain net sellers, but the pace of distribution is cooling quickly.
A third and notable development is coming from short-term holders. These fast-moving wallets often contribute to volatility and frequently sell into rebounds. Yet HODL wave data shows that the one-day to one-week cohort has fallen significantly, from 3.88% on December 4 to just 1.24% on December 10. Their reduced presence removes the speculative drag that has historically capped XRP’s upside.
On the downside, the margin for error is tight. A daily close below $1.98 would weaken the bullish structure and set the stage for a drop toward $1.88, XRP’s next major support. The coming sessions will determine whether this three-signal setup can finally deliver the rebound traders have been waiting for.
