XRP, the native token of Ripple, has recently crossed the $2 level for the second time since January 2018, marking a significant milestone in its price history. This achievement has sparked excitement among investors and traders, with many speculating that the rally will continue until XRP reaches the $3 mark.
The question on everyone’s mind now is whether the XRP price rally will continue or if a price correction is on the horizon. On-chain analytics firm Coinglass recently reported that whales and institutions have been moving large amounts of XRP to exchanges, with a total inflow of $256.30 million in the past three days. This influx of XRP onto exchanges typically signals a potential sell-off and price decline in the near future.
Despite this, traders remain bullish on XRP, with a strong majority holding long positions. The XRP Long/Short ratio currently stands at 1.98 on the four-hour timeframe, indicating a strong bullish sentiment among traders. With 66.5% of top traders holding long positions and only 33.5% holding short positions, the data suggests that bulls are in control of the altcoin in the short term, potentially supporting its rally towards $3.
In terms of technical analysis, XRP has broken through the key resistance level of $2, paving the way for a potential surge to $3.15 in the coming days. However, there is a possibility of a minor correction or breakout retest before XRP continues its upward trajectory. Currently trading near $2.17, XRP has seen a price gain of over 15% in the past 24 hours, although trading volume has decreased by 14%, indicating lower participation compared to previous days.
Overall, while XRP’s recent price performance has been impressive, there are warning signs of a potential price correction on the horizon. Traders and investors should exercise caution and closely monitor market developments to navigate the volatility in the days ahead.