XRP bullish pattern gains momentum despite 14% pullback as analysts predict breakout

The XRP bullish pattern is beginning to take shape, and smart money appears to be quietly positioning for an upward move, even as the token consolidates below its recent highs.

Traders and analysts alike are watching closely as technical indicators and on-chain metrics align to suggest an imminent shift in momentum.

XRP bullish pattern discussions are heating up after the token recently cooled off from a monthly high of $3.65, settling near $3.13 — a 14% pullback that has, so far, failed to break key support levels.

Despite only registering a 5% weekly gain, smart money is trickling into the market, hinting at renewed interest in a potential breakout.

Chaikin money flow signals underlying strength

One of the most compelling indicators supporting the XRP bullish pattern narrative is the Chaikin Money Flow (CMF). This indicator merges price movement with volume to identify whether capital is entering or exiting an asset.

From July 20 to July 26, the CMF posted a higher low, while the XRP price dropped from $3.60 to $3.13 — a classic sign that large wallets were accumulating the dip.

“The divergence between CMF and price action indicates institutional buying,” noted Harsh Notariya, crypto editor and technical analyst. “It’s not a breakout yet, but it’s definitely a buildup.”

Currently, the CMF reads 0.15, hovering just below the key bullish threshold. A decisive move above this level — along with a higher high on the CMF — could serve as a strong confirmation that momentum is shifting toward buyers.

Low exchange inflows indicate reduced selling pressure

Another factor reinforcing the XRP bullish pattern is the behavior of exchange inflows. Data shows a noticeable decline in the amount of XRP being moved to trading platforms throughout July.

Since the spike of 220 million XRP on July 11, inflows have largely remained muted. On July 29, only 9.7 million XRP were transferred to exchanges.

Lower inflows typically suggest that holders aren’t preparing to sell, which reduces short-term supply pressure and sets the stage for positive price action.

“When exchange inflows drop while accumulation indicators rise, it often precedes a volatility surge — usually upward,” explained Ali Martinez, a crypto market strategist at Santiment. “Smart money tends to act before the crowd.”

Ascending triangle builds pressure for breakout

From a technical standpoint, the XRP bullish pattern is further confirmed by the appearance of an ascending triangle on the 2-day price chart. This formation — marked by higher lows pushing against a horizontal resistance — is a traditional bullish signal.

The consolidation within this pattern shows that buyers are stepping in at increasingly higher price levels, compressing the resistance. If the upper resistance band near $3.20 breaks decisively, it could send XRP surging toward $3.80 and beyond, analysts suggest.

“The ascending triangle is textbook bullish,” said Michaël van de Poppe, founder of MN Trading. “We’re seeing XRP setting up for a strong move if resistance cracks — this is the calm before the storm.”

Market sentiment still cautious, but shifting

Despite the promising XRP bullish pattern, overall market sentiment remains cautiously optimistic. Traders are wary after repeated fake-outs in previous months. However, the combination of low sell pressure, institutional accumulation, and bullish technical patterns could act as catalysts for a fresh rally.

• CMF Breakout above 0.15 and forming a higher high

• Volume Spike confirming upward momentum

• Breakout of Ascending Triangle resistance near $3.20

• Sustained exchange outflows to signal long-term holders aren’t planning to sell

If these conditions align, the XRP bullish pattern could play out forcefully, leading to a significant price rally in the coming weeks.

With smart money steadily flowing into XRP, a bullish setup forming, and on-chain indicators flashing green, the market could be preparing for a breakout. The XRP bullish pattern might be the early sign of a renewed uptrend — one that cautious traders may not want to ignore.