Analysis of XRP Price Movement: Can XRP shatter this trend to reach $1.90?
Ripple’s digital asset XRP has attracted considerable interest from large investors and financial institutions after the emergence of a bullish price pattern. This positive development has been accompanied by a notable surge in the overall cryptocurrency market driven by Bitcoin. The market sentiment has shifted from a period of consolidation to an upward trend as Bitcoin approaches the $100,000 milestone.
Whale Moves XRP Holdings worth $124M
On November 20th, amidst the prevailing bullish market sentiment, a significant crypto whale transferred approximately 111 million XRP tokens valued at $123.59 million from Binance to an undisclosed wallet. This substantial withdrawal could be attributed to the positive market outlook and the robust price performance of XRP. Notably, XRP reserves on exchanges have been steadily declining, indicating a significant withdrawal of tokens by retail traders, large investors, and financial institutions. This trend is seen as a bullish signal, mitigating the potential for a price decline in the asset.
Technical Analysis and Crucial Levels for XRP
Technical analysis of XRP suggests the formation of a bullish pennant pattern in the four-hour timeframe, hinting at a possible breakout. A decisive breach above $1.15 and a subsequent candle close could propel XRP by 63%, targeting $1.90 in the near future.
The Relative Strength Index (RSI) and the 200 Exponential Moving Average (EMA) for XRP indicate a bullish momentum, signaling a potential upward movement in the coming days.
Increasing Open Interest
Moreover, on-chain metrics are reinforcing the optimistic outlook for XRP. Data from the on-chain analytics platform Coinglass indicates a significant surge in Open Interest (OI) as traders actively engage in trading activities pertaining to XRP. The OI for XRP has surged by 4.5% in the past 24 hours, with a notable 2.78% increase in the last four hours, underscoring a growing interest in the altcoin and indicating a bullish trend.
Significant Liquidation Levels and Market Sentiment
An analysis of the prevailing liquidation levels reveals that key thresholds are situated at $1.069 and $1.135 for XRP. Traders appear to be overleveraged at these levels, according to Coinglass.
If the bullish sentiment persists, leading to a price rise to $1.135, approximately $15.76 million worth of short positions would face liquidation. Conversely, in the event of a sentiment reversal and a drop in price to $1.069, roughly $49 million worth of long positions would be liquidated. This data highlights the dominance of bullish investors with long positions in XRP over the past 24 hours compared to short sellers.
At the current time, XRP is trading around $1.13, marking a price increase of over 3.2% in the last 24 hours. Concurrently, trading volume has surged by 25%, indicating heightened engagement from traders and investors amid an optimistic market sentiment.