Despite the prevailing uncertainties in the market, XRP has been demonstrating considerable strength in its price movements. Interestingly, it has been capturing the attention of cryptocurrency enthusiasts due to its bullish performance. What makes this moment even more noteworthy is the recent hack of Bybit resulting in a staggering $1.4 billion in cryptocurrency being siphoned less than a day ago. This event led to massive liquidations and a sharp decline in the overall market.
XRP’s Price Momentum Analysis
Similar to the broader market trend, XRP experienced a decline following news of the security breach. Yet, as of the latest update, the altcoin seemed to be staging a recovery. The rate of decrease in its value slowed down over the past 24 hours. Currently, XRP is trading around $2.60, marking a 3% drop in its price over the last day.
Conversely, there has been a notable surge in trading volume, indicating heightened interest from investors and traders.
This uptick in activity can possibly be attributed to growing optimism surrounding the potential approval of Spot XRP ETFs in the near future.
Study of XRP’s Price Trends
Analysis by CryptoCrypto suggests that XRP is displaying a bullish pattern on its charts, forming an ascending triangle on the four-hour timeframe. As of now, the altcoin’s price is maintaining support at the ascending trendline and the key level of $2.50.
Previous data indicates that whenever XRP interacts with its trendline, it typically experiences upward traction. For instance, the last instance when the crypto hit the $2.50 milestone, it surged by 10%.
Technical Forecast and Analysis for XRP
A close examination of the prevailing price dynamics shows that XRP has formed a bullish engulfing candlestick pattern at the horizontal resistance and trendline support levels – suggesting a possible uptrend ahead.
Observing recent price movements, if XRP manages to stay above $2.50, there is a high likelihood of a 10% surge towards the $2.85 mark in the near term.
However, should market sentiment remain consistent and XRP break out of the ascending triangle pattern, closing a four-hour candle above $2.80, it could gain an additional 15% momentum. This scenario would propel it towards the next resistance level at $3.25 in the following days.
Despite the optimistic outlook, XRP appears to be trading below the 200 Exponential Moving Average (EMA) on the four-hour chart – indicating a short-term downtrend. Meanwhile, the Average Directional Index (ADX) for the asset stands at 15, suggesting weak upside momentum.
Positive On-Chain Indicators for XRP
According to on-chain analytics provider Coinglass, long-term holders and investors have been accumulating XRP tokens, bolstering the bullish sentiment surrounding the altcoin.
Furthermore, the Spot Inflow/Outflow metric for XRP highlights significant outflows of $29.5 million from exchanges in the past 48 hours alone. During price recoveries, such outflows are regarded as a positive signal as they can create buying pressure and drive further appreciation.
Currently, major liquidation thresholds are situated at $2.52 on the lower end and $2.63 on the upper side, with traders exhibiting over-leveraging at these levels. These thresholds are anticipated to serve as substantial support and resistance levels, given the prevailing market dynamics.