After an impressive 12% rally, Ripple Labs’ native token XRP is poised to maintain upward momentum as it nears a bullish breakout. Amid this upward trend, there has been a surge in participation from traders and investors, as evidenced by on-chain metrics including open interest, long/short ratios, and inflow/outflow data.
Increased interest from traders
However, data shows that traders are increasingly betting on long positions due to bullish market sentiment towards XRP. Meanwhile, long-term holders are selling their holdings, likely taking profits after significant accumulation during price declines.
Cashing out long-term holders?
According to XRP spot inflow/outflow data, the exchange recorded $57.55 million worth of XRP inflows as the price broke out of the consolidation and gained upward momentum. Notably, this is the first time that the exchange has seen XRP inflows in the past two weeks.
In cryptocurrency, inflows refer to the movement of assets from wallets to exchanges, often indicating a potential sale or future price decline. However, recent inflows are significantly lower than those accumulated by long-term holders over the past two weeks.
XRP Technical Analysis and Future Levels
According to expert technical analysis, XRP is poised to break out of the bullish flags and polar price action patterns on the daily timeframe. However, the price is currently finding resistance near $2.34.
XRP price prediction
Recent price action suggests that if XRP breaks through this resistance and sees a break from its bullish pattern, the asset could potentially surge 80%, reaching the $4.45 level in the coming days.
On a positive note, the asset’s Relative Strength Index (RSI) is currently at 56.85, below oversold territory, indicating that XRP has ample room to achieve significant growth in the future.
Current price momentum
At press time, XRP is trading near $2.33 and has experienced an 11% rally in the past 24 hours. Trading volume surged 30% during the same period, reflecting increased participation from traders and investors amid a possible breakout.