On-Chain Metrics for XRP

• On-chain metrics revealed that exchanges have seen outflows of XRP worth $29.5 million.
• Traders seemed to be over-leveraged at $2.52 on the lower side, and $2.63 on the upper side.

Despite market uncertainty, XRP has been projecting strength on its price charts, garnering significant attention from crypto enthusiasts due to its bullish price action. Notably, this comes shortly after Bybit experienced a hack, resulting in $1.4 billion in cryptos drained, triggering liquidations and a market decline.

XRP Price Momentum

Like much of the market, XRP’s value dipped following the news of the exploit. However, at the time of writing, it appeared to be slightly recovering, with its rate of depreciation slowing down. XRP was trading near $2.60 after a 3% drop in the last 24 hours, but trading volume surged by 47%, likely driven by optimism surrounding the potential approval of Spot XRP ETFs.

XRP’s Price Action

According to AMBCrypto’s analysis, XRP appeared bullish, forming an ascending triangle pattern in the four-hour timeframe. It was maintaining support at the ascending trendline and the horizontal level of $2.50. Historical trends indicated that XRP typically gains momentum upon touching its trendline; for example, its last touch at $2.50 resulted in a 10% surge.

XRP Price Prediction and Technical Analysis

Recent price momentum showed a bullish engulfing candlestick pattern at the horizontal resistance and trendline support, hinting at a possible upside rally. If XRP maintains above $2.50, it could rise by 10% to reach $2.85 soon. A breakout above $2.80 could gain an extra 15%, targeting the next resistance at $3.25.

However, it was trading below the 200 EMA on the four-hour timeframe, suggesting a short-term downtrend. The Average Directional Index (ADX) indicated weak upside momentum with a reading of 15.

Bullish On-Chain Metrics

On-chain analytics from Coinglass indicated long-term holders accumulating XRP tokens, further supporting a bullish outlook. The Spot Inflow/Outflow metric showed significant exchange outflows of $29.5 million in XRP over 48 hours. Such outflows during a price recovery are bullish as they may create buying pressure. The major liquidation levels are at $2.52 (lower) and $2.63 (upper), where traders appear over-leveraged. These levels are likely to serve as strong support and resistance due to market positioning.