XRP, the native token of Ripple Labs, is showing strong signs of bullish momentum after breaking out of a bullish price action pattern on the daily timeframe. While the overall cryptocurrency market has been struggling recently, XRP has been consolidating for some time.
Technical analysis experts predict that XRP has broken out of a bullish flag and pole pattern on the daily chart, with the price closing above the pattern. This breakout has ended the consolidation phase for XRP, opening up the possibility for a potential 80% surge to reach the $4.5 level in the near future. This breakout is seen as a textbook example of a buying opportunity for traders and investors looking for long-term holdings.
In addition to the recent breakout, XRP investors have shown strong confidence in the token through on-chain metrics. Despite price struggles, exchanges have recorded token inflows on only three days since December 18, 2024. This indicates that investors have been accumulating XRP tokens, with $13 million worth of tokens withdrawn from exchanges in the past 24 hours. This continuous accumulation by long-term holders is expected to support XRP in its rally.
Trader participation has also increased significantly since the breakout, with XRP’s open interest jumping by 31%. This surge in engagement from traders signals a strong interest in XRP amid the market shift.
Currently, XRP is trading around $2.54, experiencing an 8.75% price surge in the past 24 hours. The trading volume has also increased by 60%, highlighting the heightened participation from traders and investors.
Overall, XRP’s breakout from the bullish pattern, coupled with strong on-chain metrics and increased trader participation, suggests that the token is poised for significant upside momentum in the coming days. Investors and traders are closely watching XRP’s price movements as it continues to show promising signs of a potential rally.