Is a cash flow of 11 million USD enough to help the price of XRP rise to the sky again?

In the past 24 hours, XRP has remained nearly flat with a slight fall of 0.74% on the chart. However, at the time of writing, this cryptocurrency is showing positive recovery signals, revealing significant growth potential in the short term.

Nevertheless, the overall market sentiment remains quite cautious, creating a certain resistance to the recovery of XRP.

Bullish signals and the influx of capital into XRP

Currently, XRP is forming an inverted head and shoulders pattern on the 4-hour chart — a technical pattern that often paves the way for strong bullish rallies. If this scenario plays out as expected, the price of XRP could very well bounce up to the $2.5 mark — the nearest peak established on March 24.

XRP/USDT chart in the 4-hour timeframe | Source: TradingViewIn addition to technical factors, data from the derivatives market further reinforces the optimistic picture. The trading volume of XRP options in the past 24 hours has surged by 256%, while open contracts have also broken through to 220,860 USD — indicating that more and more investors are opening positions, likely buying orders.

Not only options traders, but also buying power from the spot market is accelerating strongly. During the same period, approximately 11 million USD worth of XRP has been withdrawn from exchanges and transferred to personal wallets — a move that demonstrates strong confidence from long-term investors.

Source: CoinglassIf the capital continues to flow in this way, while the supply on the exchange is gradually being depleted, the market may soon enter a scarcity phase — an ideal condition for a breakout bull run.

The decline in on-chain activity could hinder XRP

Although the bulls are still in control of the market, the noticeable weakening in key on-chain indicators — particularly the number of transactions and active accounts — could hinder the recovery momentum of XRP. These figures reflect the declining level of interaction and usage of the XRP network.

! Source: XRPScanSpecifically, trading volume over the past 24 hours has plummeted from 1.56 million to just 660,000, indicating a significant drop in XRP-related trading activity. At the same time, the number of active accounts — especially sending addresses — also plummeted, from a peak of 20,700 to 8,500, highlighting a marked decline in on-chain user engagement.

If this trend does not soon reverse with a strong recovery in activity, the bullish momentum of XRP is likely to weaken or even stall.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

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