After a remarkable 12% surge, XRP, the digital asset associated with Ripple Labs, is on track to maintain its upward trajectory as it approaches a bullish breakout. The recent rally has attracted a surge in interest from both traders and investors, as evidenced by on-chain metrics such as open interest, the long/short ratio, and inflow/outflow data.
Traders are increasingly favoring long positions on XRP, buoyed by the positive market sentiment surrounding the token. In contrast, long-term holders have been seen selling off their holdings, likely capitalizing on profits following substantial accumulation during periods of price decline.
The latest data on XRP spot inflow/outflow indicates that exchanges have witnessed a significant inflow of $57.55 million worth of XRP as the price broke out of consolidation and gained upward momentum. This uptick in inflow marks the first instance in the past two weeks, suggesting potential sell-offs or a future price decline. However, the recent inflow remains modest compared to the accumulation by long-term holders over the preceding weeks.
From a technical analysis standpoint, XRP appears poised for a breakout from a bullish flag and pole price action pattern on the daily timeframe. Despite encountering resistance around the $2.34 level, experts anticipate a potential surge of up to 80% if XRP successfully breaches this barrier and confirms the breakout.
The Relative Strength Index (RSI) for XRP currently sits at 56.85, indicating that the asset is not yet in overbought territory and has room for substantial growth in the near future.
As of the latest update, XRP is trading near $2.33, reflecting an 11% increase in the past 24 hours. Trading volume has also surged by 30%, underscoring heightened activity from market participants amid expectations of a breakout.
Overall, XRP’s recent price momentum, coupled with positive technical indicators and increased trading activity, suggests that the digital asset may be gearing up for a significant uptrend in the days ahead. Investors and traders alike are closely monitoring the developments to capitalize on potential opportunities presented by XRP’s impending bullish breakout.