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The cryptocurrency market has recently witnessed XRP, the native token of Ripple, achieving a remarkable feat by surpassing the $2 mark for only the second time since January 2018. This performance has sparked optimism among investors, leading many to anticipate further gains, potentially driving the price to the coveted $3 level.
Will the XRP Price Rally Continue?
XRP’s latest achievement has garnered significant attention from both whales and individual investors, posing a critical question: Will this bullish trend persist, or could we see a price correction in the near future? As participation from large stakeholders intensifies, the market is abuzz with speculation and analysis.
$256 Million XRP Inflow: Impending Sell-off?
Recent data from Coinglass, an on-chain analytics firm, reveals that during this bullish phase, whales and institutional players have been offloading substantial amounts of XRP onto exchanges. The platform’s XRP spot inflow/outflow data indicate a notable inflow of $256.30 million over the past three days. Typically, such significant inflows to exchanges suggest that major holders might be preparing to sell, potentially leading to a dip in prices.
Traders’ Strong Bets on the Long Side
Despite these large sell-offs, trader sentiment remains robustly optimistic. Coinglass data shows that many traders are placing strong bets on long positions. As of now, the XRP Long/Short ratio on the four-hour timeframe is 1.98, reflecting a prevailing bullish sentiment. Notably, 66.5% of top traders across various exchanges are maintaining long positions, while only 33.5% are on the short side. This bullish positioning suggests that in the short term, bulls are exerting considerable influence, potentially sustaining XRP’s rally towards the $3 target.
XRP Technical Analysis and Key Levels
Current on-chain metrics paint a picture of bullish dominance, with traders and analysts keenly observing the market dynamics. However, the substantial activity from whales and institutional investors, combined with the recent $256.30 million XRP offload, indicates that a price correction could be on the horizon.
XRP Price Prediction
According to a technical analysis by CoinPedia, XRP has successfully breached a critical resistance level at $2. This breakout opens up the possibility of reaching $3.15 in the upcoming days. Despite this optimistic outlook, the market may experience a minor correction or a retest of the breakout level before the rally towards $3 continues. Presently, XRP is trading around $2.17, showcasing a 15% price increase over the past 24 hours. However, it’s worth noting that trading volume has decreased by 14%, indicating a dip in trader and investor participation compared to previous days.