XRP price continues to hold levels above $2 as the broader crypto market shows signs of recovery. Following these gains, a renowned analyst predicts that the token could rally to $10 or crash to $0.70. At the same time, more than 300 million XRP tokens have exited the Binance exchange, raising speculation of a possible supply squeeze.
XRP Price Targets $10 as Analyst Spots Bullish Pattern
The XRP price has been making significant gains this week following the launch of spot exchange-traded funds (ETFs) by Grayscale and Franklin Templeton tracking the price of the asset. Following this launch, spot XRP ETFs outperformed Bitcoin and Ethereum earlier this week with $164 million inflows, driving the rally.
Analyst Crypto Patel on X now observes that the token might rally towards $10. In his bull case, he noted that XRP broke out of a symmetrical triangle pattern towards the end of last year before encountering resistance at $3.40.
Following the triangle breakout, XRP entered a consolidation period, resulting in the formation of a bull flag. Hence, if the price were to break out above the resistance at $3.40 again, it could drive a strong rally towards $10.
However, Crypto Patel also gave a bear case, in which he opined that if the bullish thesis fails, the price of XRP could tumble below $1 to $0.70.
Patel’s forecast comes amid a notable surge in XRP’s open interest, highlighting a risk-on appetite among traders that may trigger volatility. Per Coinglass data, XRP’s open interest has surged by more than $1 billion in the last five days to $4.11 billion at press time.
Analyst ChartNerd on X also shared a similar bullish forecast, stating that XRP is about to break out of an accumulation phase. The analysis noted that overcoming resistance at this year’s ATH of $3.40 could drive a rally towards $20.
300M XRP Tokens Exit Binance
As institutional interest towards XRP surges through the newly launched spot ETFs, the token’s supply on exchanges is falling, creation speculation of a looming squeeze. Data from CryptoQuant shows that since October 6, more than 300 million XRP tokens have exited the Binance exchange.
According to CryptoQuant analyst DarkFost, XRP reserves on Binance stand at around 2.7 billion, which is one of the lowest levels that have ever been recorded on the platform. The analyst added,
“Day after day, the decline continues, and this is generally seen as a positive signal. It indicates that real demand is building, with investors withdrawing their XRP from Binance to hold them in private wallets. And this behavior is never insignificant.”
If the trend continues, the XRP price could be poised for a parabolic rally, especially now that institutions are also stepping in. However, for the coin to make significant gains, the broader crypto market needs to sustain its current bullish trajectory.
