XRP, Ripple Labs’ native token, is in a crucial make-or-break situation due to bearish market sentiment and a recent price decline. Data from CoinMarketCap shows that XRP has lost over 6% of its value in the past 24 hours and is currently at a critical support level of $1.95.
XRP Technical Analysis and Its Key Levels
However, the XRP daily chart shows signs of price recovery and now appears to be rebounding. According to expert technical analysis, XRP’s daily chart is witnessing a bullish divergence, indicating a potential price recovery.
In the chart, while the asset’s price is making a lower low, XRP’s Relative Strength Index (RSI) has formed a higher high, suggesting that the asset is poised for a price recovery and an upside rally.
Based on recent price action and historical momentum, if XRP holds above the $1.95 level, there is a strong possibility that it could soar by 40% to reach $2.95 in the coming days.
Despite a notable price decline in recent days, the asset still holds above the 200 Exponential Moving Average (EMA), indicating that it is in an uptrend.
Bullish On-Chain Metrics
With continuous price fluctuations in recent days, whales and long-term holders have been accumulating tokens, as reported by the on-chain analytics firm Coinglass.
$110 Million Worth of XRP Outflow
Data from spot inflow/outflow reveals that exchanges have witnessed a significant outflow of $110 million worth of XRP tokens in the past 24 hours, indicating potential accumulation. This could create buying pressure and fuel a further upside rally, which we have been witnessing.
Traders Bearish Outlook
Apart from this, intraday traders are currently over-leveraged at the $2.08 level, where traders betting on the long side have built $10.30 million worth of long positions. Meanwhile, $2.136 is another over-leveraged level where traders betting on the short side have built $19 million worth of short positions.
This data shows that traders are following the current market sentiment and believe the price won’t rally above the $2.136 level.
