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XRP has seen a remarkable outflow of $288 million from exchanges, signaling potential long-term confidence among investors.
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The cryptocurrency is on the radar of both retail and institutional investors, drawing attention due to its substantial price appreciation of 370% in the last month.
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As per Coinglass, “This shift suggests not only a bullish sentiment but indicates that traders are positioning for a possible price surge.”
This article explores $288 million XRP outflow, trader sentiment, and potential price momentum, offering insights for investors and market participants.
$288 million XRP outflow
According to CoinGlass’s XRP spot inflow/outflow data, exchanges have witnessed a significant outflow of $288 million in tokens since the beginning of December. This outflow indicates that investors are withdrawing their assets from exchanges, potentially signaling a bullish outlook as they switch to long-term holding strategies.
Source: Coinglass
In the cryptocurrency context, the substantial outflow from exchanges signifies a withdrawal trend towards private wallets. This shift not only hints at potential bullish momentum but also alleviates immediate selling pressure, setting a stage for possible upward price adjustments.
Bearish sentiment among traders
While withdrawals indicate a positive long-term outlook, short-term sentiment among traders appears mixed. Data shows that the XRP Long/Short Ratio stands at 0.98, suggesting a split among traders, with 50.8% holding short positions versus 49.2% in long positions.
According to COINOTAG’s technical analysis, the XRP token recently breached an inclined trendline on the hourly time frame and now faces resistance around the $0.247 level.
Source: TradingView
If XRP can successfully break through this resistance level and consolidate above $2.50, analysts suggest a possible rally of 18% could push the price towards $2.90 in the near term. This potential price movement becomes more compelling given the token’s position above the 200 Exponential Moving Average (EMA), demonstrating strength in both lower and higher time frames.
The Relative Strength Index (RSI) was hovering around 40, suggesting that XRP is approaching oversold territory, which historically provides an opportunity for a rebound in price action.
Read Ripple’s [XRP] Price Prediction 2024–2025
XRP’s price momentum
As of press time, XRP is currently trading near $2.40, reflecting a price decline of 7.2% over the past 24 hours. This drop has been accompanied by a 25% reduction in trading volume, highlighting decreased investor activity compared to previous trading sessions.
Such market behavior could indicate that traders are either capitulating or are in a wait-and-see mode, contributing to potential volatility in the short term.
Conclusion
In summary, the recent $288 million outflow of XRP tokens signals a potential shift among investors toward long-term holding strategies, despite prevailing bearish sentiment among traders. With critical resistance levels identified and current price momentum analyzed, XRP presents a landscape of opportunities for traders and investors alike as they navigate the volatile cryptocurrency market.
