XRP, the native token of Ripple, has reached a significant milestone by surpassing the $2 mark for the second time since January 2018. With its remarkable performance, it appears likely that the bullish trend will continue until it hits the $3 threshold.
Is the XRP Price Rally Set to Continue?
After XRP’s recent achievement, there has been a surge in participation from whales and investors, leading to a common question – Will this rally persist, or is there a possibility of a price correction in the near future?
$256M of XRP Inflow, Potential Sell-off Ahead?
Coinglass, an on-chain analytics firm, has reported a significant influx of $256.30 million in XRP to exchanges amidst the ongoing bull run. This influx suggests that whales and institutions have been transferring their holdings to exchanges, a move that often precedes a sell-off and a subsequent price decline.
Furthermore, traders are showing strong confidence in long positions, with the XRP Long/Short ratio on the four-hour timeframe currently at 1.98, indicating a bullish sentiment among traders.
Presently, 66.5% of top traders hold long positions, while 33.5% hold short positions. This data suggests that bulls are dominating the market in the short term, potentially supporting XRP’s rally towards the $3 mark.
XRP Technical Analysis and Future Outlook
An analysis of on-chain metrics indicates that bulls are currently driving the market, which could propel XRP’s price and ongoing rally. However, the substantial influx of $256.30 million worth of XRP and the activity of whales and institutions hint at a possible price correction in the days ahead.
XRP Price Forecast
Based on CoinPedia’s technical analysis, XRP has broken through the key resistance level of $2, paving the way for a potential surge to $3.15 in the coming days. Nonetheless, a minor correction or a retest of the breakout may occur before XRP continues its ascent towards $3.
Currently trading near $2.17, XRP has experienced a price increase of over 15% in the last 24 hours. However, the trading volume has decreased by 14%, indicating lower participation from traders and investors compared to previous days.
