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After an impressive 12% rally, XRP, the native token of Ripple Labs, is poised to sustain its upward momentum as it nears a bullish breakout. Amid this upward trend, participation from traders and investors has skyrocketed, as revealed by on-chain metrics, including open interest, the long/short ratio, and inflow/outflow data.
Traders Rising InterestÂ
However, data also reveals that traders are increasingly betting on long positions due to bullish market sentiment around XRP. Meanwhile, long-term holders are selling off their holdings, likely taking profits after significant accumulation during price declines.
Long-Term Holders Cash Out?
Data from XRP spot inflow/outflow reveals that exchanges have recorded a significant inflow of $57.55 million worth of XRP as the price broke out of consolidation and gained upward momentum. Notably, this marks the first time in the past two weeks that exchanges have seen an XRP inflow.
In cryptocurrency, inflow refers to the movement of assets from wallets to exchanges, often indicating a potential sell-off or a future price decline. However, the recent inflow is significantly smaller than what long-term holders accumulated over the past two weeks.
XRP Technical Analysis and Upcoming Levels
According to expert technical analysis, XRP is poised for a breakout from a bullish flag and pole price action pattern on the daily time frame. However, the price is currently facing resistance near the $2.34 level.
XRP Price Prediction
Recent price action suggests that if XRP breaches this resistance and confirms a breakout from the bullish pattern, the asset could potentially soar by 80%, reaching the $4.45 level in the future.
On a positive note, the Relative Strength Index (RSI) for the asset currently stands at 56.85, below the oversold territory, indicating that XRP has sufficient room for significant growth in the coming days.
Current Price Momentum
At press time, XRP is trading near $2.33 and has experienced an upside rally of 11% in the past 24 hours. During the same period, its trading volume surged by 30%, reflecting heightened participation from traders and investors amid a potential breakout.