After a remarkable 12% surge, XRP, the digital asset of Ripple Labs, appears to be on track to maintain its upward trajectory as it approaches a bullish breakout. The recent uptrend has seen a surge in activity from both traders and investors, as indicated by on-chain metrics such as open interest, the long/short ratio, and inflow/outflow data.
Traders are showing a growing interest in long positions, driven by the positive market sentiment surrounding XRP. On the other hand, long-term holders seem to be cashing out their holdings, likely capitalizing on profits accumulated during previous price declines.
Data from XRP spot inflow/outflow suggests that exchanges have witnessed a substantial influx of $57.55 million worth of XRP as the price broke out of consolidation and started trending upwards. This marks the first instance in the past two weeks where exchanges have observed an inflow of XRP.
In the world of cryptocurrency, inflow typically signifies the movement of assets from wallets to exchanges, often hinting at a potential sell-off or a future price drop. Nonetheless, the recent inflow is considerably lower compared to the accumulation by long-term holders over the past fortnight.
Moving on to technical analysis, experts predict that XRP is primed for a breakout from a bullish flag and pole pattern on the daily chart. However, the current price is encountering resistance around the $2.34 level.
In terms of price prediction, if XRP manages to breach this resistance and confirm a breakout from the bullish pattern, the asset could potentially surge by 80%, reaching the $4.45 level in the foreseeable future. Additionally, the Relative Strength Index (RSI) currently stands at 56.85, indicating that XRP has ample room for substantial growth in the days ahead.
As of now, XRP is trading near $2.33, experiencing an 11% increase in the last 24 hours. Concurrently, trading volume has spiked by 30%, underscoring the heightened engagement from traders and investors amid the potential breakout scenario.