XRP's $1.40 Recovery a Trap?...On-Chain Shows Accumulation, Charts Warn of Collapse

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Although XRP has recovered $1.40, the market is at a critical juncture with on-chain accumulation signals and downward pressure on charts appearing simultaneously. Buying pressure is quietly building, but the technical structure warns that a bottom has not yet been formed.

Bitcoinist reported on May 5, citing CryptoQuant analysis, that XRP's 100-day taker buy/sell ratio on Binance rose to 0.9766 on May 3. This indicator approaching 1 means that aggressive long-term buying pressure is almost matching aggressive selling pressure. Bitcoinist interpreted this as a signal indicating a medium-to-long-term accumulation trend, not short-term chase buying.

This trend is receiving more attention in conjunction with price adjustments. XRP has fallen over 60% from its peak of $3.55 in July 2025 to its current level around $1.39. While the price plummeted, the average 100-day buying pressure actually increased. Bitcoinist stated that the accumulation of aggressive buying pressure during a long-term decline indicates the positioning of participants who are moving ahead of price reactions.

However, charts are sending the opposite warning. XRP is forming a bearish pennant structure above a key support level. This pattern involves narrowing price fluctuations near the bottom after a decline, which increases the risk of continued weakness given that the previous trend was downward. Coupled with hidden bearish divergence in the Relative Strength Index, analysis suggests that momentum is weakening even if the price appears to be stabilizing.

XRP has recovered $1.40 but has not yet made a decisive breakthrough. Since the sharp decline in February, the price has formed a narrow trading range between the $1.30 support and $1.45 resistance levels. The declining 100-day and 200-day moving averages continue to act as dynamic resistance, preventing recovery attempts. Candles have narrowed, wicks have shortened, and trading volume has decreased compared to the capitulation phase.

The key range is between $1.45 and $1.50. If XRP breaks through this range with strong volume, it could transition to a higher high structure and open the way to $1.70. Conversely, if it loses $1.30, the current attempt to form a bottom will be invalidated, and it could retreat to the demand zone between $1.10 and $1.20. On-chain data speaks of accumulation, but charts warn of a long squeeze risk, and XRP remains in a consolidation phase where it has yet to choose a trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*