XRP displayed fresh strength midweek, climbing 6.8% from Monday’s lows near $2.70, as traders pointed to crucial support levels that could pave the way for a recovery toward new highs. Analysts now suggest the token may be preparing for a significant upward move, with price targets stretching to $4 and beyond.

Technical Setup Points to 42% Upside

Data from TradingView showed XRP rebounding from the lower trend line of a symmetrical triangle on the daily chart. This chart pattern typically reflects a period of indecision with narrowing volatility, often followed by a decisive breakout.

For XRP, a clear move above $3 could mark the start of a reversal, opening the path toward the triangle’s measured target at $4.08. Such a breakout would equate to a 42% rally from current levels. Before reaching that goal, however, bulls must overcome resistance near $3.40 and at $3.66, an eight-year high.

Double Bottom Holds Key Support

On shorter time frames, trader and analyst CasiTrades noted a “massive wick down to a double bottom near $2.70” on the four-hour chart. According to her, this structure remains valid within a Wave 2 Elliott Wave count, provided the price holds above the $2.70 floor.

Immediate support sits at $2.79, with $2.70 serving as the critical level to maintain. A failure below this threshold could expose XRP to a further dip toward $2.58. On the upside, Fibonacci extension levels highlight $4 and $4.40 as major resistance areas, reinforcing the case for a trend shift.

Analysts Eye October Rally

The optimistic sentiment is shared by other commentators. Crypto analyst CryptoBull suggested XRP could climb as high as $5 in October if it confirms a breakout from a bull flag pattern. The confluence of chart formations has therefore strengthened the view that momentum is tilting in favour of buyers.

Whale Activity Supports Confidence

Beyond chart signals, on-chain data indicates that large holders are backing the rally. Metrics from Santiment show wallets holding between one million and ten million XRP increased their balances by around 30 million tokens early this week. Collectively, these entities now control 6.77 billion XRP, representing 11% of the circulating supply.

Rather than exiting during Monday’s sell-off, whales took the opportunity to buy at lower levels. This accumulation suggests confidence in further gains and helps establish a price floor by absorbing selling pressure. Retail traders often follow such activity, reinforcing upward momentum.

Accumulation Zone Signals Preparation

XRP’s net holder position change has been firmly positive since late August, marking a reversal from July’s profit-taking phase when the token touched multi-year highs at $3.66. Much of the recent accumulation has occurred within the $2.70 to $3 range, underlining the importance of this zone for investors positioning ahead of a potential breakout.

As analysts highlight, sustained buying by large entities and the defence of key support levels could set the stage for a wider recovery. With technical indicators aligning with whale activity, the market may be bracing for a decisive move in the weeks ahead.