XRP, the native cryptocurrency of Ripple, has recently reached a remarkable milestone by surpassing the $2 threshold for the second time since January 2018. This impressive uptrend has sparked optimism among investors and enthusiasts, with many speculating whether the momentum will carry XRP to the coveted $3 target.
Will the XRP Price Rally Continue?
The recent surge in XRP’s price has captured the attention of both large investors, commonly known as whales, and retail investors. As participation increases, a pressing question arises: Can this bullish rally persist, or are we on the brink of a potential price correction?
$256 Million of XRP Inflow: Is a Sell-off Imminent?
According to insights from the on-chain analytics firm Coinglass, the current bull run has seen whales and institutional players offloading substantial amounts of XRP onto exchanges. Coinglass reports a notable inflow of $256.30 million worth of XRP to exchanges over the past three days. Such significant inflows often hint at a possible sell-off, which could lead to a dip in XRP’s price.
Traders Place Strong Bets on Long Positions
Despite the potential for a sell-off, trader sentiment remains exceedingly bullish. Coinglass data reveals that the XRP Long/Short ratio on the four-hour chart stands at 1.98, indicating a robust preference for long positions. Presently, 66.5% of top traders across various exchanges are betting on long positions, while 33.5% are shorting the altcoin. This strong bullish sentiment suggests that XRP could continue its upward trajectory towards the $3 mark.
XRP Technical Analysis and Upcoming Levels
Current technical analysis indicates that bulls have a firm grip on XRP’s price movement, supporting its ongoing rally. However, the substantial offloading by whales and institutions, amounting to $256.30 million, suggests that a price correction could be on the horizon.
XRP Price Prediction
Analyzing the technical indicators, CoinPedia predicts that XRP has successfully breached the critical resistance level at $2. This breakthrough opens the possibility for XRP to climb to approximately $3.15 in the coming days. However, a minor price correction or a retest of the breakout level could occur before the rally extends beyond $3.
Presently, XRP is trading around $2.17, marking a substantial 15% gain over the past 24 hours. However, it’s noteworthy that trading volume has declined by 14% during this period, reflecting reduced trader and investor participation compared to previous days.
