XRP, the native token of Ripple Labs, is currently positioned to maintain its upward trajectory, despite experiencing some selling pressure in recent days. This optimistic outlook for XRP is likely fueled by bullish price activity, increased interest from large-scale investors, and noteworthy token withdrawals from exchanges.
XRP’s Current Price Momentum
Even with this positive forecast, XRP has seen a 3% decline in price over the past 24 hours, with the token now trading around $2.40. However, the interest from investors and traders has led to a 12% surge in trading volume during the same timeframe. Additionally, significant amounts of XRP have been withdrawn from exchanges, as indicated by data from an on-chain analytics firm.
Significant $315 Million XRP Outflow
According to the analytics firm Coinglass, the spot inflow and outflow data reveal that exchanges across the cryptocurrency sector have experienced a substantial outflow of XRP, valued at approximately $315 million. In the realm of cryptocurrency, the term “outflow” describes the movement of assets from exchanges to personal wallets. This can suggest a buying opportunity, diminish selling pressure, and point to a potential upward rally in the near future.
Historically, when exchanges have seen notable inflows, XRP’s price dropped by 20%. Now, with the trend reversing, there is an indication of a possible upward rally.
XRP Technical Analysis and Key Levels to Watch
Expert technical analysis notes that XRP recently broke through a descending trendline, although it currently faces resistance around the $2.45 mark. If XRP manages to surpass and close a daily candle above this resistance level, there is a strong chance the altcoin could climb by 18%, potentially reaching $2.90 in the upcoming days.
When these metrics are combined with technical analysis, it becomes apparent that bullish forces are currently exerting control over the asset. This dominance could support XRP in sustaining its upward momentum and achieving a new high in the near future.
In conclusion, while XRP has faced recent challenges, the overall sentiment remains bullish. The significant outflows from exchanges and the interest from large investors suggest a potential for growth. Traders and investors should keep an eye on the technical levels and market dynamics as XRP navigates its path forward.
