The cryptocurrency market has been abuzz with excitement as XRP, Ripple’s native token, has once again crossed the $2 threshold. This marks only the second time since January 2018 that XRP has achieved such a significant milestone. With this remarkable performance, market analysts and investors alike are speculating on whether the current bullish momentum could propel XRP to new heights, potentially reaching the $3 mark in the near future.
Will the XRP Price Rally Continue?
The recent surge in XRP’s price has captured the attention of both whales and retail investors, resulting in heightened market activity. This development raises a critical question: Is the current rally sustainable, or should investors brace themselves for a potential price correction in the coming days?
XRP Capital Inflow and Possible Sell-off
A report by the on-chain analytics firm Coinglass reveals interesting insights into the recent market dynamics. Despite the ongoing bullish rally, significant amounts of XRP, worth millions of dollars, have been moved to exchanges by whales and institutional investors. Specifically, Coinglass’s data on XRP spot inflow and outflow indicates that exchanges have seen an inflow of $256.30 million within just three days.
This substantial influx of XRP onto exchanges typically signals a readiness to sell, which could lead to a price dip. In the volatile world of cryptocurrencies, such movements are often precursors to a market correction.
Traders Betting Strongly on the Long Side
Traders, however, seem to maintain an optimistic outlook, as evidenced by their strong inclination towards long positions. Coinglass data indicates that, as of the latest reports, the XRP Long/Short ratio on the four-hour chart stands at 1.98. This demonstrates a prevailing bullish sentiment among traders.
Currently, a substantial 66.5% of top traders on various exchanges are holding long positions, while only 33.5% are betting on short positions. This dominance of long positions suggests that in the short term, bulls are exerting control, potentially driving XRP’s rally further towards the anticipated $3 mark.
XRP Technical Analysis and Future Levels
Analyzing on-chain metrics, it appears that the bulls are currently steering the market. However, the influx of $256.30 million worth of XRP onto exchanges by whales and institutions might hint at an upcoming price correction.
XRP Price Prediction
Technical analysis from CoinPedia suggests that XRP has successfully breached the crucial resistance level of $2. This breakthrough paves the way for a potential climb to $3.15 in the upcoming days. Nevertheless, investors should be mindful of the possibility of a minor correction or a retest of the breakout before the rally proceeds towards the next target.
At present, XRP is trading at approximately $2.17, reflecting a significant price increase of over 15% within the past 24 hours. Despite this surge, the trading volume has decreased by 14%, indicating a temporary dip in trader and investor participation compared to previous days.
As the market continues to evolve, all eyes remain on XRP to see whether it can sustain its upward trajectory or if a correction is on the horizon. Investors and analysts alike are closely monitoring these developments, poised to react to the dynamic changes in this ever-volatile market.
