XRP, the native token of Ripple Labs, is showing signs of significant upside potential following the breakout of a bullish price action pattern on the daily timeframe. Despite the recent struggles in the overall cryptocurrency market, XRP has been consolidating for some time, but now it seems poised for a major move.
According to expert technical analysis, XRP has recently broken out of a bullish flag and pole pattern on the daily timeframe, closing a daily candle above the pattern. This breakout has put an end to the prolonged consolidation phase and could potentially lead to a price surge of up to 80%, with a target of $4.5 in the near future. This breakout is seen as a strong buying opportunity for both traders and long-term investors.
On-chain metrics also indicate strong investor confidence in XRP. Despite recent price declines in the market, XRP investors have shown unwavering interest in the token. Exchange data reveals that token inflows have been minimal since December 18, 2024, with only three days of recorded inflows. Additionally, there has been a significant outflow of $13 million worth of XRP from exchanges in the past 24 hours, suggesting that long-term holders are continuing to accumulate the token.
In addition to long-term holders, trader participation in XRP has also seen a significant increase. Since the breakout, XRP’s open interest has surged by 31%, indicating heightened engagement from traders in response to the market shift.
Currently, XRP is trading near $2.54 and has seen an increase of over 8.75% in the past 24 hours. Trading volume has also surged by 60%, indicating a rise in participation from both traders and investors. With the recent breakout and positive on-chain metrics, XRP appears to be in a strong position for further price appreciation in the coming days. Investors and traders are closely watching to see if XRP can reach its target of $4.5 and beyond.