Why XRP Price Correction of About 9% Could Set Up A Rally

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Why XRP Price Correction of About 9% Could Set Up A Rally

XRP trades at $3.04 at press time, down 2.2% in the past 24 hours. It is still up 5.8% over the past week but down 1.6% across 30 days, showing flat-to-weak month-on-month bias.

Charts and on-chain signals suggest a dip, which may not be the worst outcome here. In fact, a correction could help set up one of XRPs most bullish patterns — but only if certain levels are respected.

Derivatives Show Sellers in Control While Spot Flows Slow

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One warning signal comes from XRPs taker buy-sell ratio, which measures whether aggressive buyers (takers lifting asks) or aggressive sellers (takers hitting bids) dominate futures trading. A reading above 1 shows buyers in control, while below 1 shows sellers taking over.

XRP Taker Buy-Sell Ratio Flips Increasingly Bearish: CryptoQuant

On September 14, the ratio dropped to 0.84, its lowest level in a month. This means that for every aggressive buyer, there were far more aggressive sellers. Such a sharp imbalance shows futures traders leaning heavily to the bearish side.

Usually, when this ratio bottoms, prices stage a relief bounce — but this time the XRP price slipped instead, repeating late August when a similar setup led to a fall from $2.96 to $2.75, a near 7% drop.

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Spot flows are not helping either. Exchange Withdrawing Transactions on Binance — a measure of how many holders are moving XRP off the exchange for longer-term storage — collapsed from 15,648 on September 11 to just 498 at press time, a 97% drop.

XRP Withdrawals Have Slowed Down On Binance: CryptoQuant

Unlike raw outflow sums that can be skewed by one big wallet, this metric counts actual transactions, making it a clearer signal of buy-side demand. The collapse suggests far fewer holders are stepping in to accumulate.

Do note that the last time the Binance-specific withdrawing transactions fell off a cliff on August 27, the XRP price corrected and made a month-on-month low by September 1.

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When futures traders sell aggressively and spot demand vanishes simultaneously, short-term corrections often deepen. That sets the stage for why a dip may happen before XRP finds its footing.

XRP Price Chart Shows Inverse Head-and-Shoulders in Process, but a Dip Is Necessary

On the daily chart, XRP is building an inverse head-and-shoulders pattern, a setup that often precedes strong rallies. For the pattern to be textbook, XRP may need to dip toward $2.78, roughly 9% below current levels, to mirror the left shoulder.

Even a pullback to $2.93 could complete the right shoulder.

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XRP Price Analysis: TradingView

A neckline sits near $3.15, sloping upward. A daily close above $3.15 would confirm the breakout, first opening targets at $3.35.

Momentum indicators back this “dip first, breakout later” view. The Relative Strength Index (RSI) shows hidden bearish divergence, where prices have made lower highs while RSI has made higher highs. This often signals continuation of a downtrend, which aligns with XRPs 30-day slide of 1.6%. Yet, this continuation could be constructive — forming the right shoulder needed for a bullish reversal.

For now, supports lie at $2.99, $2.93, and $2.78. The inverse head-and-shoulders pattern will still hold if the XRP price rebounds before reaching $2.78.

A drop under $2.69, lower than the head of the pattern, however, would invalidate the bullish pattern and tilt sentiment fully bearish.