XRP Rally: On-Chain Data Reveals Bullish Signals
XRP has captivated traders with a recent price surge, prompting speculation about its future trajectory. A closer look at on-chain data reveals intriguing insights into this market movement.
$75 Million XRP Outflow Fuels Speculation
Over the past week, XRP has shown remarkable resilience, consolidating around a crucial support level despite broader market sell-offs. This stability is partly attributed to a significant outflow of XRP from exchanges, totaling $75.55 million, according to on-chain analytics firm, Coinglass. This outflow indicates potential accumulation and hints at building upward pressure. While some see it as a buying opportunity, others interpret it as a bullish signal.
Source: Coinglass
Long Positions Dominate: A Bullish Outlook?
The bullish sentiment isn't limited to long-term holders. Intraday trading data reveals that traders with long positions are dominant, with significant leverage at $2.399 ($24.55 million) suggesting a strong belief in an upward trend. Conversely, short positions are less prevalent, with the largest concentration at $2.50 ($15.77 million).
Source: Coinglass
This combination of on-chain metrics paints a picture of strong bullish dominance. XRP's support from an ascending trendline, historically associated with significant price reversals, further bolsters this outlook.
XRP Price Action and Key Levels
Technically, XRP shows a bullish consolidation pattern, trading within a narrow range of $2.28 and $2.51. Our analysis suggests a potential 30% surge to $3.22 if the price breaks above $2.52 and closes above this level. Conversely, a breakdown below $2.25 could lead to a 15% drop to $1.90.
XRP remains above the 200-day Exponential Moving Average (EMA), a further indication of the uptrend.
Source: TradingView
Current Market Momentum
At the time of writing, XRP was trading around $2.45, reflecting a 1.10% increase in the past 24 hours. Trading volume has surged by 25%, indicating increased participation driven by bullish sentiment.
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