Four Key Signals Point to a Major XRP Price Bottom at $1.12 Multiple technical, on-chain, and market data points are converging to suggest that XRP may have found a generational price floor at the $1.12 level. This convergence of indicators is leading analysts to question if a significant trend reversal is now underway for the digital asset. The first and most prominent signal comes from technical analysis on the weekly chart. The price action formed a classic bullish hammer candlestick pattern precisely at the $1.12 support zone. This pattern, characterized by a long lower wick and a small body near the top of the range, is widely interpreted as a strong rejection of lower prices and a potential exhaustion of selling pressure. It indicates that buyers stepped in aggressively at that level to defend it. Supporting this technical picture is on-chain data examining investor behavior. Metrics reveal that the number of active XRP addresses has shown a notable increase coinciding with the price finding its low. A rising number of active addresses often signals growing network utility and user adoption, which can be a fundamental precursor to price appreciation. It suggests underlying activity is strengthening even during price consolidation. Furthermore, exchange flow data provides a critical third data point. There has been a observable trend of XRP moving off centralized exchanges and into private wallets, a process known as accumulation. A decrease in exchange supply typically reduces immediate selling pressure and indicates a shift toward a long-term holding mentality among investors. This outflow from exchanges is often viewed as a bullish signal, as it implies investors are preparing for a future price rise rather than looking to sell imminently. Finally, the performance of exchange-traded products tied to XRP offers a fourth perspective. These financial instruments, which allow traditional investors to gain exposure to XRP, have seen consistent inflows of capital. This sustained institutional interest, even during a broader market downturn, suggests professional money managers are positioning for a recovery. It adds a layer of validation to the retail accumulation seen in the on-chain data. While no single indicator can guarantee a market bottom, the alignment of these four distinct factors creates a compelling case. The technical bounce at a key level, combined with rising network activity, sustained accumulation off exchanges, and institutional buying through ETPs, paints a picture of building momentum beneath the surface. The critical question now is whether bulls can capitalize on this setup. For a confirmed trend reversal to take hold, XRP must convert the $1.12 support zone into a launchpad. This would require a sustained push above nearby resistance levels with increasing volume. The coming weeks will be crucial in determining if this confluence of signals truly marks the end of the downtrend and the beginning of a new bullish phase for XRP, or if further consolidation is needed. The evidence, however, suggests the foundations for a reversal are being laid.
