In this bleeding cryptocurrency market, XRP, the native token of Ripple Labs, seems to have controlled itself from a major price decline as it holds crucial support. For XRP, the support at $2.20 plays an important role. Since the beginning of December 2024, the altcoin has reached this level more than four times, and each time it has experienced an upside rally.
However, this time, sentiment appears to be similar, as the price has started moving upward.
Long-Term Holders Rising Interest in XRP
The current market sentiment appears negative, as the market has witnessed a significant $1.18 billion in crypto liquidations. This substantial liquidation has created fear among traders and investors, discouraging them from staying and participating in the asset.
$220 Million of XRP outflow
Despite the fear, traders and long-term holders seem optimistic about XRP, as they have purchased millions worth of tokens during this price decline, according to the on-chain analytics firm Coinglass. Data from XRP spot inflow/outflow reveals that exchanges have witnessed a continuous and significant outflow of $220 million worth of XRP.
This outflow indicates a bullish outlook for XRP despite the ongoing price decline, as long-term holders continue to believe in the token. This explains why exchanges are experiencing substantial token outflows.
In the cryptocurrency context, “outflow” refers to the movement of assets from exchanges to long-term holders’ wallets, signaling a potential upside rally and an ideal buying opportunity.
XRP Technical Analysis and Upcoming Levels
According to CoinPedia’s technical analysis, XRP appears bullish as the price is showing signs of a reversal from the crucial support level of $2.20. Based on the recent price action, the altcoin is near the buying zone, where it has typically experienced an upside rally.
If XRP holds the $2.20 support level, there is a strong possibility it could soar by 13% to reach the next resistance level of $2.50 in the near future. On the other hand, if XRP falls below the support level and closes a daily candle below the $2.20 level, we could see XRP dropping to $2 or even lower in the future.
Current Price Momentum
At press time, XRP is trading near $2.30 and has experienced a price surge of over 2.70% in the past 24 hours. During the same period, its trading volume increased by 7%, indicating heightened participation from traders and investors.
