The post XRP Price Prediction: Can It Rally to $2.83? appeared first on Coinpedia Fintech News
After continuous price fluctuations in recent days, XRP, the native token of Ripple Labs, is poised for notable upside momentum due to the formation of a bullish price action pattern on the four-hour timeframe.
XRP Technical Analysis and Upcoming Levels
According to expert technical analysis, XRP has formed a bullish cup-and-handle price action pattern in the four-hour timeframe and is on the verge of a breakout. Amid ongoing price fluctuations, the price has reached the neckline of the pattern.
Based on recent price action and historical trends, if the asset breaks out of the pattern and closes a four-hour candle above the $2.55 mark, there is a strong possibility it could soar by 12% to reach the $2.83 level in the coming days.
However, the neckline of the pattern coincides with the 200 Exponential Moving Average (EMA) in the same timeframe, which also acts as a resistance level.
Current Price Momentum
XRP is currently trading near $2.52, having registered a modest gain of 1.10% in the past 24 hours. During the same period, its trading volume dropped by 45%, indicating lower participation from traders and investors compared to previous days.
$13 Million Worth of XRP Inflow
The potential reason behind XRP’s struggle to gain momentum is the ongoing inflow from the exchanges. According to the on-chain analytics firm Coinglass, investors and long-term holders have potentially offloaded nearly $13 million worth of XRP tokens onto exchanges.
This substantial outflow onto exchanges is currently causing prices to struggle, as it has the potential to create selling pressure and drive downside momentum.
XRP’s Major Liquidation Levels
At press time, traders betting on the long side are currently dominating, while those betting on the short side appear exhausted. Traders are over-leveraged at $2.40, having built $57 million worth of long positions. Meanwhile, $2.55 is an over-leveraged level where traders have built $8.50 million worth of short positions.
This over-leveraged positioning suggests that bulls are strongly supporting XRP in an attempt to breach the current resistance level.