XRP, the cryptocurrency associated with Ripple Labs, is showing signs of a potential rebound after a prolonged period of decline. While the digital asset has experienced a more than 50% drop since October 2025, recent market patterns and shifts in investor behavior suggest a possible 20% price increase by March, according to analysis from TradingView. The potential upswing hinges on a technical formation known as a “double bottom” and renewed interest from larger XRP holders, often referred to as “whales.”
The recent struggles of XRP have been notable, with five consecutive months of losses weighing on investor sentiment. However, the emergence of the double bottom pattern – identified on Thursday – offers a glimmer of optimism. This pattern occurs when the price of an asset reaches a low point twice, with a subsequent rise in between, resembling the shape of a “W” on a chart. A breakout above a key resistance level, known as the “neckline,” would confirm the pattern and signal a potential upward trajectory.
Double Bottom Pattern Points to Potential Gains
Currently, the neckline for XRP sits around $1.50. Should the cryptocurrency successfully break through this level, analysts predict a potential surge to between $1.68 and $1.70, representing approximately a 20% increase from its current value. This analysis relies on the principle that the height of the pattern is often mirrored in the projected price increase following a breakout. A visual representation of this pattern can be found here.
Whales Re-Enter the Market
Adding to the bullish signals, data from CryptoQuant indicates a shift in the behavior of large XRP holders. After a period of sustained outflows, representing a distribution phase, the net capital flows are now trending towards neutral levels. On Thursday, the total whale flow, based on a 90-day moving average, was approximately -3.29 million XRP, a significant decrease compared to the -33.50 million XRP recorded in December. This suggests that the selling pressure from large investors is easing.
the amount of XRP held in wallets containing at least 1,000 tokens has been on the rise in recent weeks. This indicates that “whales” may be halting sales and potentially accumulating XRP at these lower price levels. A similar easing of whale outflows was observed in April 2025, which preceded a more than 50% recovery in XRP’s price, according to TradingView’s analysis. This chart illustrates the recent trend in XRP holdings by large wallets.
Potential Headwinds and Risks
Despite the positive indicators, several factors could hinder XRP’s potential rally. The $1.68 to $1.70 range lies above the 50-day exponential moving average (EMA), a level the cryptocurrency failed to breach in February. A rejection at this level could lead to a bearish flag pattern, potentially driving the price down to around $1.00 – a 30% decrease from current levels. This chart shows the 50-day EMA in relation to XRP’s price movement.
Macroeconomic risks also pose a threat. A return to risk-averse trading and ongoing geopolitical tensions, such as those between the United States and Iran, could trigger a flight to safety, reducing liquidity in volatile assets like cryptocurrencies. This could make it more difficult for XRP to sustain a breakout, even with the currently promising chart patterns. According to Yahoo Finance, as of 10:00 AM UTC on February 27, 2026, XRP was trading at $1.4081, down 3.04% from the previous day. You can view historical XRP prices on Yahoo Finance.
The cryptocurrency market remains inherently volatile, and investors should exercise caution and conduct thorough research before making any investment decisions.
Looking ahead, the coming weeks will be crucial for XRP. The cryptocurrency’s ability to decisively break above the $1.50 neckline will be a key indicator of its near-term trajectory. Investors will also be closely monitoring whale activity and broader macroeconomic conditions for further clues.
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