In this ongoing market uncertainty, XRP, the native token of Ripple Labs, appears to be consolidating within a tight range between $2.31 and $2.53 over the past few days. This consolidation serves as a crucial support level, reinforced by XRP’s ascending trendline since late November 2024.
$12 Million Worth of XRP Outflow
However, this level appears to be crucial for investors and intraday traders, as they have been accumulating and betting on the long side, according to the on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed an outflow of a modest $12 million worth of XRP in the past 24 hours.
This outflow from exchanges indicates potential accumulation, which could create buying pressure and drive further upside momentum. Historically, this level has acted as a strong price reversal, which might explain the ongoing consolidation.
Traders Mixed Sentiment
On the other hand, intraday traders seem to be getting confused, resulting in the formation of similar long and short positions, as reported by Coinglass data. At press time, intraday traders holding long positions are over-leveraged at the $2.31 level, with $33.35 million worth of long positions.
Conversely, traders holding short positions are over-leveraged at $2.45, with $30.30 million worth of short positions. On-chain metrics indicate that traders appear to be confused, leading them to bet on both sides.
XRP Price Action and Current Momentum
According to expert technical analysis, XRP is consolidating within a tight range near a crucial support level. Based on recent price action and historical patterns, if the asset breaks out of consolidation and closes a daily candle above the $2.53 level, there is a strong possibility it could surge by 30% to reach $3.30 in the coming days.
Despite the uncertain outlook, XRP is trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset is in an uptrend.
XRP is currently trading near $2.40 and has experienced a price drop of 2.50% in the past 24 hours. During the same period, its trading volume surged by 25%, indicating increased participation from traders and investors compared to the previous day.
