Will XRP challenge its previous high of $3.64 and potentially rise further?
In the world of cryptocurrency, Ripple [XRP] has been making waves with its recent price movements and exchange activity.
At press time, XRP was trading near $3.03, up 2.50% over the past 24 hours. This rise in value comes as the digital asset successfully retested its descending trendline breakout at the 50% Fibonacci Retracement level at $2.95.
The daily chart shows the $2.95 level as a local support for the XRP token. The 50 EMA is supporting the market trend for XRP, as can be observed in the chart. The Enhanced Moving Average (EMA) support also favors a potential rally toward $3.64.
The RSI for XRP, currently at 54, indicates that the market is neither overbought nor oversold, suggesting a potential for a rise in buying pressure to tilt the market further bullish. CoinGlass data supports this outlook, indicating a predominantly bullish trader sentiment for XRP.
Interestingly, over $54.21 million worth of XRP has left exchanges in the past 48 hours, suggesting potential accumulation and the possibility of an upside rally for the cryptocurrency. This substantial outflow could be a sign of long-term investors taking advantage of the current price level.
However, it's important to note that the major liquidation levels for XRP are at $2.932 on the lower side and $3.048 on the upper side. These levels are significant as they are where traders are over-leveraged, meaning a sudden price movement could potentially trigger a large sell-off.
The Binance Long/Short Ratio for XRP is currently at 3.34, with 77% of top traders holding long positions and 23% holding short positions. This high number of long positions indicates a bullish sentiment among traders, but it also means there could be significant potential for a correction if the market turns bearish.
In conclusion, while the current outlook for XRP is bullish, it's crucial for investors to keep a close eye on the market and be prepared for potential volatility due to the major liquidation levels and the balance between long and short positions. As always, doing thorough research and making informed decisions is key in the world of cryptocurrency.
