Journalist
Posted:
- Traders were over-leveraged at $2.399 on the lower side and $2.50 on the upper side.
- On-chain metrics revealed that exchanges have witnessed an outflow of $75.55 million worth of XRP tokens.
It has been a week since Ripple [XRP] started consolidating at a crucial level, which could determine whether the asset will rally or decline in the coming days.
In this make-or-break situation, XRP is gaining significant attention from crypto enthusiasts, leading to its stability at a critical level despite the ongoing market sell-off.
$75 million worth of XRP outflow
The asset has maintained its current level due to the continuous accumulation and withdrawal of XRP tokens from exchanges, as reported by the on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow revealed that exchanges have witnessed an outflow of $75.55 million worth of XRP tokens since the beginning of the price consolidation.
Source: Coinglass
This substantial outflow from exchanges hints that potential accumulation could create buying pressure and further upside momentum.
However, some believe this data also signals an ideal buying opportunity.
Traders holding long positions are dominating
Besides long-term holders’ bullish outlook, intraday traders are also betting on an upside rally. Data reveals traders holding long positions are dominating, with over-leveraged positions at $2.399, totaling $24.55 million.
Meanwhile, $2.50 is the nearest over-leveraged level, where traders hold $15.77 million worth of short positions.
Source: Coinglass
When combining these on-chain metrics, it appears that bulls are strongly dominating.
This is occurring while XRP is receiving crucial support from an ascending trendline, which has a history of significant price reversals. Experts currently expect a similar reversal from the asset.
XRP price action and key levels
According to AMBCrypto’s technical analysis, XRP appears bullish and is currently consolidating within a narrow range between the $2.28 and $2.51 levels.
However, compared to other assets, XRP seems optimistic.
Source: TradingView
Based on recent price action and historical patterns, if XRP breaks out of consolidation and closes above $2.52, it could soar by 30% to $3.22.
Conversely, if it breaks down from consolidation and closes below $2.25, it could drop by 15% to $1.90.
XRP has remained above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend.
Current price momentum
XRP was trading near $2.45, at press time, and has experienced a price surge of over 1.10% in the past 24 hours.
During the same period, due to bullish outlooks, trader and investor participation skyrocketed, leading to a 25% jump in trading volume.
