The post XRP on the Verge of a Breakout, 40% Rally Imminent? appeared first on Coinpedia Fintech News
Amid the recent price decline, XRP, the native token of Ripple Labs, has formed a bullish price action pattern and is poised for a double-digit price rally. Today, January 31, 2025, the overall cryptocurrency market seems to be recovering, including Bitcoin (BTC) and Ethereum (ETH), but XRP appears to be struggling.
XRP Current Market Sentiment
Despite the positive market sentiment, XRP is currently trading near $3.13 and has experienced a modest price surge of over 0.80% in the past 24 hours. During the same period, investors and traders have shown lower interest, resulting in a 35% drop in trading volume.
This modest price surge caused XLM to surpass XRP in terms of gains, as it soared more than 13% in the past 24 hours. It appears that XRP traders and investors are now shifting their attention to XLM, amid potential spot ETF talks.
XRP Technical Analysis and Upcoming Levels
According to expert technical analysis, XRP has formed a bullish flag and pole price action pattern on the daily time frame and seems to be struggling to break out.
Based on the recent price action, if XRP successfully breaches this pattern and closes a daily candle above the $3.21 level, there is a strong possibility it could soar by 40% to reach the $4.50 level in the future.
With XRP’s Relative Strength Index (RSI) near 59, it indicates that the asset has enough room to soar and experience impressive price gains.
XRP’s Mixed-Sentiment
Looking at the bullish price action, investors seem to be accumulating the token, as revealed by the on-chain analytics firm Coinglass. Data from spot inflow/outflow shows that exchanges have witnessed an outflow of over $12 million worth of XRP in the past 24 hours, which indicates potential accumulation and could cause buying pressure and a further upside rally.
Traders Bet on XRP
Despite the bullish outlook from investors and whales, intraday traders found betting on the bearish side. XRP’s exchange liquidation map revealed that $3.063 is a level where bulls are over-leveraged, holding $24.50 million worth of long positions. Meanwhile, $3.183 is the level where short sellers hold $50.09 million worth of short positions.
This data reveals that short-sellers are currently dominating in the short term, as they hold nearly double the positions of long-term holders.