Key Points
XRP is currently trading between $1.42 and $1.45, having experienced a sharp correction of over 10%. This pullback occurred amid increased volatility in the overall cryptocurrency market, but several blockchain indicators suggest that conditions for a reversal may be forming.
The recent price action follows last week's breakout from a bullish flag pattern. In chart pattern analysis, a bullish flag typically forms after a significant price increase, consolidating within a descending channel. After breaking the upper boundary of this channel, assets often retest previous resistance areas as newly established support zones—this scenario appears to be unfolding currently.
The key support area is located in the mid-$1.40 range, aligning with the 20-day exponential moving average. If XRP can maintain above this threshold, the expected upside target for the bullish flag pattern is around $1.70 to $1.72, indicating approximately a 20% upside potential from current levels.
Korean Exchange Withdrawals Hit All-Time High
Blockchain intelligence data from CryptoQuant shows significant XRP withdrawal activity on the South Korean Upbit platform since December 2025. Wallet holders across nearly all size categories are withdrawing XRP from exchanges in unprecedented numbers. Reduced exchange balances typically indicate a decrease in selling pressure in the short term.
CryptoQuant analyst CW noted that the withdrawal pattern from 2021 to early 2023 resembles the high outflows from Korean exchanges, which corresponded with the accumulation phase of XRP. Prior to this phase, XRP's price rose from under $1 to over $3, marking an increase of about 500%.
Large Holder Behavior Shows Significant Reversal
The 90-day moving average of whale transactions for XRP has returned to positive territory for the first time after a prolonged negative period in early 2024 and 2025. During the negative phase, large holders continued to engage in selling activities. This recent reversal suggests that significant distribution pressure may be easing.
A similar shift occurred between April and September 2025, when XRP rose from about $2.20 to $3.55.
Macro Economic Developments
Regarding macroeconomic developments, the Federal Reserve maintained the benchmark interest rate between 3.5% and 3.75% during its policy meeting on March 18, citing ongoing inflation concerns and geopolitical uncertainties. Financial markets interpreted this stance as a continuation of restrictive policies. The CMC Crypto Fear and Greed Index showed a reading of 29 at the time of analysis, reflecting market tension.
Institutional participation remains limited. The U.S.-listed XRP spot exchange-traded fund recorded zero net capital inflows on Wednesday. Currently, the total assets under management are approximately $1.02 billion, with cumulative net inflows of $1.21 billion.
