Despite the current market correction, XRP, the token native to Ripple, continues to attract attention from whales and investors, based on on-chain data provided by Coinglass.
XRP’s recent outstanding performance, with a remarkable 370% surge in the last month, could be one reason for this continued interest.
Significant $288 million Outflow of XRP Tokens
Coinglass’s data on XRP inflow and outflow reveals a notable total outflow of $288 million from exchanges since the start of December.
In the realm of cryptocurrencies, such a substantial outflow typically indicates assets being moved from exchanges to wallets for long-term storage, suggesting a potential buying opportunity, a possible upward trend, and reduced selling pressure.
Trader Sentiment and Market Analysis
Aside from withdrawals for long-term holding, traders seem to be adopting a neutral stance, possibly awaiting an impending breakout for XRP.
The XRP Long/Short Ratio currently stands at 0.98, indicating a bearish sentiment among traders. Approximately 50.8% of top traders hold short positions, while 49.2% favor long positions.
Technical analysis from CryptoCrypto indicates that XRP has recently surpassed an upward trendline on the hourly chart but is encountering resistance around the $0.247 mark.
Given recent price movements and historical trends, a breakthrough above this resistance level and a daily close above $2.50 could potentially propel XRP by 18% to reach $2.90 in the near future.
Furthermore, XRP is currently trading above the 200 Exponential Moving Average (EMA) across all time frames, suggesting an uptrend. The Relative Strength Index (RSI) for XRP sits at 40, approaching the oversold region.
An asset’s RSI nearing oversold conditions often indicates potential for a significant rally in the days ahead.
Current Price Action of XRP
At the time of reporting, XRP was hovering around $2.40, reflecting a 7.2% price dip in the last 24 hours.
Within the same timeframe, trading volume for XRP decreased by 25%, signaling reduced activity among traders and investors compared to previous trading days.