The cryptocurrency market has been closely monitoring the price action of XRP, especially after it recently dipped slightly to the $2.2 mark. During this period, there were reports from CryptoQuant indicating that over $4 million worth of XRP short positions got liquidated.
Following this correction, XRP quickly resumed its upward trend. According to CryptoQuant’s data, the decrease in exchange outflows post the profit-taking phase suggested a temporary pause in accumulation.
Currently, there are signs indicating a potential upcoming move, with XRP’s Open Interest (OI) reaching significant highs.
Observations from Weekly Chart Analysis
Analysis of the weekly chart shows XRP consolidating within a symmetrical triangle pattern before breaking out towards the end of November. This breakout resulted in a remarkable 300% surge in price.
While this surge is noteworthy, it is still a long way off from the 1000% rally witnessed during the 2021 bull market.
If XRP manages to replicate its previous bullish momentum, it may target the $7.7 level. However, traders are keenly monitoring the $3.3 resistance level, a significant obstacle that could shape the next phase of the rally.
Indicators of Strength in the Daily Chart
The daily chart presents a positive outlook. After the recent pullback to $2.2, XRP swiftly regained its bullish stance. This recovery suggests strong interest from buyers, even during periods of price consolidation.
Metrics like rising Open Interest and reduced exchange outflows add credibility to the potential for further price increases. These combined indicators indicate that traders might be gearing up for a breakout.
Is XRP Capable of Surpassing $3.3?
Overcoming the $3.3 resistance level is vital for XRP to sustain its upward momentum. A successful breach could pave the way for higher price targets, potentially pushing towards $7.7, if market conditions align with the 2021 rally.
Presently, the price action and on-chain metrics of XRP offer promising signals. Sustaining this positive momentum will rely on surpassing crucial resistance levels and enduring support from the market.