The post Time to Buy XRP? Record $250 Million of Outflow appeared first on Coinpedia Fintech News
The current market sentiment appears confusing due to the immense profit-taking in the past 24 hours. Amid this, XRP, the native token of Ripple Labs, seems promising and is poised for a massive upside rally, as long-term holders have shown strong interest and have been accumulating substantial amounts of tokens.
Record $250 Million of XRP Outflow
According to the on-chain analytics firm CoinGlass, the spot inflow/outflow metric revealed that exchanges have experienced an outflow of $250.67 million worth of XRP. This massive outflow is the highest that exchanges have witnessed in the past year.
In the cryptocurrency landscape, “outflow” refers to the movement of assets from exchanges to the wallets of long-term holders or investors, which potentially suggests accumulation. This can create buying pressure and further upside momentum. Additionally, it hints at an ideal buying opportunity.
Current Price Momentum
However, due to the recent profit-taking, the overall cryptocurrency market is struggling to gain momentum, and the same is happening with XRP.
Currently, XRP is trading near $3.15 and has experienced a modest price decline of 0.50% in the past 24 hours. However, during the same period, investors and traders found the price attractive, resulting in a 110% jump in trading volume.
XRP Technical Analysis
According to expert technical analysis, XRP appears to be consolidating in a tight range and has held its crucial level, maintaining stability against price declines, unlike other cryptocurrencies, which makes it bullish.
On the daily time frame, XRP’s Relative Strength Index (RSI) is below the overbought area, suggesting that the asset has enough room to soar and break its consolidation.
XRP Price Prediction
Based on the recent price action and historical price momentum, if XRP breaches the upper level of the consolidation zone and closes a daily candle above the $3.30 level, there is a strong possibility it could soar by 36% to reach the $4.50 level in the future.
However, the bullish price action and the $250.67 million outflow from the exchanges hint that a massive upside rally is likely to occur soon.