On October 15, 2024, Ripple’s native token XRP experienced a significant breakout from its extended consolidation period and is now set for a potential major rally. For nearly two weeks, XRP remained confined within a narrow trading range. During this time, both whales and institutions were actively acquiring XRP tokens, spurred by the filing of its Spot Exchange Traded Fund (ETF) in the United States.
XRP Current Price Momentum
At the time of writing, XRP is trading around $0.548, having seen a price increase of over 3.6% in the last 24 hours. In the same period, its trading volume surged by 90%, reflecting heightened interest among traders and investors following the breakout from its consolidation phase. This surge in activity underscores the growing momentum behind XRP’s price movement.
XRP Technical Analysis and Upcoming Levels
According to a detailed analysis by CoinPedia, XRP is showing a bullish trend, currently encountering resistance at the 200-day Exponential Moving Average (EMA). Although XRP has broken out of its prolonged consolidation zone, it is expected to face challenges until it surpasses the 200 EMA and secures a daily close above this critical level.
If XRP manages to close a daily candle above the $0.5580 mark, there is a strong likelihood that it could rally by 17% or more, potentially reaching the $0.65 level if positive sentiment persists. The Relative Strength Index (RSI) for XRP is presently in the oversold territory, indicating the possibility of a price reversal in the near future.
Bullish On-Chain Metrics
The bullish sentiment surrounding XRP is further bolstered by various on-chain metrics. Data from the analytics firm Coinglass reveals that XRP’s Long/Short ratio is currently at 1.039, signifying a strong bullish sentiment among market participants. Furthermore, its future open interest has increased by 9.5% in the past 24 hours and 3.9% over the last four hours, demonstrating a growing interest in XRP trading.
This rising open interest suggests an increasing inclination towards long positions as opposed to short ones, as trader sentiment has shifted rapidly following the recent breakout. By combining these optimistic on-chain metrics with technical analysis, it becomes evident that bulls are currently in control of the market, setting the stage for a potential significant upside rally in the coming days.
