Amidst the current market correction, XRP, the digital asset associated with Ripple, continues to attract attention from large investors and traders, as indicated by data from Coinglass that tracks on-chain activities.
One of the reasons for this heightened interest could be XRP’s recent impressive performance, displaying a remarkable surge of 370% in valuation over the past month.
The Movement of $288 Million XRP Tokens
Figures from CoinGlass’s analysis of XRP spot inflow/outflow data reveal a substantial $288 million in XRP tokens leaving exchanges since the start of December.
In the realm of cryptocurrency, such a significant outflow typically signifies the transfer of assets from exchanges to personal wallets for long-term holding purposes.
This behavior suggests a potential opportunity for investors, hints at a possible uptrend, and diminishes immediate selling pressure on the token.
Sentiment Shifts among Traders
Aside from the movement of assets into long-term storage, traders seem to be adopting a neutral stance, possibly in anticipation of a significant development in XRP’s value.
Data indicates that the XRP Long/Short Ratio currently stands at 0.98, suggesting a bearish sentiment among traders, with 50.8% holding short positions compared to 49.2% with long positions.
According to technical analysis from CryptoCrypto, XRP recently broke through an upward trend line on the hourly chart and now faces resistance around the $0.247 mark.
Considering recent market movements and past trends, a breakout above this resistance level, closing a daily candle above $2.50, could potentially trigger an 18% surge in XRP’s value, pushing it towards $2.90 in the near term.
Encouragingly, the altcoin is currently trading above the 200 Exponential Moving Average (EMA) on various time frames, indicating an upward trend. Additionally, XRP’s Relative Strength Index (RSI) sits at 40, nearing oversold territory.
Typically, when an asset’s RSI approaches oversold levels, it often suggests that the asset has room to rally in the near future.
Examining XRP’s Price Trajectory
At the time of writing, XRP is priced close to $2.40, marking a 7.2% decrease in value over the last 24 hours.
Simultaneously, trading activity for XRP has seen a 25% decrease in volume during the same period, indicating reduced engagement from traders and investors compared to previous sessions.