Following an impressive 12% surge, XRP, the native token of Ripple Labs, appears ready to maintain its upward trajectory as it approaches a bullish breakout. With traders and investors flocking to the market, on-chain metrics such as open interest, the long/short ratio, and inflow/outflow data are showing a significant uptick.
Increasing Trader Interest
However, data indicates that traders are increasingly favoring long positions due to the positive market sentiment surrounding XRP. On the other hand, long-term holders seem to be capitalizing on profits by offloading their holdings after accumulating during price declines.
Long-Term Holders Selling Off?
Recent data on XRP spot inflow/outflow reveals a substantial inflow of $57.55 million worth of XRP into exchanges as the price broke out of consolidation and gained momentum. This marks the first inflow of XRP to exchanges in the past two weeks.
In the world of cryptocurrency, inflow typically signifies the movement of assets from wallets to exchanges, often hinting at a possible sell-off or a future price drop. Despite this recent inflow, it is notably lower than the accumulation by long-term holders over the past fortnight.
XRP Technical Analysis and Future Levels
Expert technical analysis suggests that XRP is on the verge of breaking out from a bullish flag and pole pattern on the daily chart. However, it currently faces resistance around the $2.34 mark.
XRP Price Forecast
Recent price movements indicate that if XRP can breach this resistance and confirm a breakout from the bullish pattern, the asset could potentially surge by 80%, reaching $4.45 in the foreseeable future.
Encouragingly, the Relative Strength Index (RSI) for XRP currently sits at 56.85, below the overbought threshold, signaling ample room for growth in the days ahead.
Current Price Trend
At the time of writing, XRP is trading around $2.33, having experienced an 11% uptick in the past 24 hours. Simultaneously, its trading volume has surged by 30%, reflecting increased engagement from traders and investors amidst the potential breakout.