XRP, the native token of Ripple Labs, has been making headlines recently as long-term holders continue to show interest in the asset despite a significant sell-off in the cryptocurrency market. On April 4, 2025, data from an on-chain analytics firm revealed that exchanges have been experiencing continuous outflows of XRP tokens, even as the price of the asset continues to decline.
A staggering $55 million worth of XRP tokens have been withdrawn from exchanges over the past 48 hours, according to data from Coinglass. This significant outflow suggests that investors are accumulating XRP, raising questions about whether this could be an opportune time to buy the asset.
Despite the price of XRP trading near $2.05 and experiencing a 5% decline in the past 24 hours, the trading volume has surged by 95%. This increased market activity could explain the outflow of XRP tokens from exchanges.
Technical analysis experts have noted that XRP has reached a critical level following its recent price drop, forming a bearish head and shoulders pattern on its daily chart. The asset is currently near the neckline of this pattern, creating a make-or-break situation for XRP.
Historically, when XRP reaches this level, it tends to exhibit a price reversal or rebound, which may explain the recent outflows from exchanges. However, if market sentiment remains bearish and the price continues to fall, there is a possibility that XRP could drop by 44% to reach the $1.20 level in the future.
On the other hand, Coinglass liquidation data indicates that traders are bullish on XRP. Major liquidation levels for over-leveraged positions are at $2.08 on the upper side and $1.93 on the lower side. Traders have built $28 million and $58.70 million worth of short and long positions, respectively, at these levels over the past 24 hours, suggesting that bulls are currently dominating the asset.
In conclusion, despite the recent sell-off in the cryptocurrency market, XRP continues to attract attention from long-term holders. The outflows from exchanges, coupled with bullish sentiment from traders, indicate that there is still optimism surrounding the future potential of XRP. Investors will be keeping a close eye on price movements and market developments in the coming days to see how the asset performs in the face of current market conditions.