Despite the current uncertainties in the market, XRP has been showing considerable strength in its price movements. This has attracted a great deal of interest from cryptocurrency enthusiasts due to its positive price performance. The timing is particularly intriguing given the recent hack on Bybit, which resulted in a loss of $1.4 billion in cryptocurrencies. This event led to significant liquidations and a noticeable downturn in the market overall.
XRP’s Price Momentum Analysis
Similar to other assets, XRP saw a decline in value following news of the security breach. However, there seems to be a mild recovery happening at the time of this report. The rate of decline has slowed down in the past 24 hours, with XRP currently trading around $2.60 after a 3% decrease.
Interestingly, there has been a notable 47% increase in trading volume, suggesting a heightened interest from investors and traders. This surge in activity could potentially be linked to growing optimism surrounding the potential approval of Spot XRP ETFs in the near future.
Analysis of XRP’s Price Behavior
A technical analysis by CryptoCrypto pointed out a bullish pattern in XRP’s charts, with the formation of an ascending triangle on the four-hour timeframe. As of now, the coin’s price remains supported by the ascending trendline and the $2.50 level.
Looking at historical data, whenever XRP touches its trendline, it tends to experience an upward momentum. For instance, the last time XRP hit the $2.50 mark, it surged by 10%.
XRP Price Forecast and Technical Review
An observation of the current price momentum indicates the formation of a bullish engulfing candlestick pattern at the horizontal resistance and trendline support, signaling a potential uptrend. Should XRP maintain levels above $2.50, there is a likelihood of a 10% surge towards $2.85 in the upcoming days.
If market sentiment remains stable and XRP breaks out of the ascending triangle pattern by closing a four-hour candle above $2.80, it might gain an additional 15% push. This could lead to a climb towards the next resistance at $3.25 soon.
Despite the positive outlook, XRP appears to be trading below the 200 Exponential Moving Average (EMA) on the four-hour timeframe, indicating a short-term downtrend. The asset’s Average Directional Index (ADX) reading of 15 also suggests weak upside momentum.
Positive On-Chain Data Insights
Long-term holders and investors have been accumulating XRP tokens, as per data from on-chain analytics provider Coinglass. This accumulation further supports the optimistic outlook for XRP.
Notably, there have been significant outflows of XRP from exchanges amounting to $29.5 million in the past 48 hours. During a price recovery phase, such outflows are often viewed as a bullish signal, creating buying pressure that could drive further price increases.
Currently, the major liquidation levels are noted at $2.52 (lower side) and $2.63 (upper side), with traders exhibiting a high level of leverage at these points. These levels are likely to serve as strong support and resistance levels, given the current market dynamics.