After a remarkable 12% rally, XRP, the native token of Ripple Labs, is on the verge of sustaining its upward momentum, inching closer to a bullish breakout. This surge has sparked increased interest from traders and investors, as evidenced by several on-chain metrics such as open interest, the long/short ratio, and inflow/outflow data.
Traders’ Growing Interest in XRP
Current data highlights that traders are showing a strong inclination towards long positions, driven by the bullish market sentiment surrounding XRP. Interestingly, while traders embrace long positions, long-term holders are starting to liquidate their holdings. This trend suggests that these holders are capitalizing on profits after amassing XRP during previous price dips.
Are Long-Term Holders Cashing Out?
Insights from XRP spot inflow/outflow data indicate that exchanges have observed a substantial inflow of $57.55 million worth of XRP as the token breaks out of its consolidation phase and gains upward momentum. This marks a significant event, as it is the first notable inflow to exchanges in the last two weeks. In the cryptocurrency world, an inflow typically suggests a potential sell-off or an anticipated price drop. However, the recent inflow is considerably smaller than the amount long-term holders have accumulated over the past weeks.
XRP Technical Analysis and Future Levels
According to expert technical analysis, XRP is primed for a breakout from a bullish flag and pole price action pattern on the daily time frame. Presently, the price is encountering resistance around the $2.34 level. This resistance is critical and overcoming it could be pivotal for XRP’s future trajectory.
XRP Price Prediction
Based on recent price movements, if XRP manages to breach this resistance and confirms a breakout from the bullish pattern, the asset could potentially skyrocket by 80%, reaching the $4.45 mark in the near future. On a brighter note, the Relative Strength Index (RSI) for XRP is currently at 56.85, which is below the oversold territory. This indicates ample room for substantial growth in the coming days.
Current Price Momentum
As of now, XRP is trading close to $2.33, having witnessed an impressive 11% rally in the past 24 hours. During the same timeframe, its trading volume has surged by 30%, signaling heightened participation from traders and investors amidst the potential breakout scenario.
The cryptocurrency market remains volatile and dynamic, and XRP’s near-term performance will be crucial in determining its long-term trajectory. Investors and traders are advised to stay updated with market trends and perform due diligence before making investment decisions.
