Time to Buy XRP? Record $250 Million of Outflow
The current market sentiment looks confusing as there has been a lot of profit taking in the past 24 hours. Against this backdrop, Ripple Labs’ native token XRP appears promising and poised to surge higher as long-term holders have shown strong interest and have been accumulating large amounts of the token.
XRP outflow hits record $250 million
Spot inflow/outflow indicators show $250.67 million worth of XRP outflows from exchanges, according to on-chain analytics firm CoinGlass. The massive outflow is the highest the exchange has seen in the past year.
In the cryptocurrency world, “outflow” refers to the movement of assets from an exchange to the wallets of long-term holders or investors, which can mean accumulation. This could create buying pressure and further upward momentum. Additionally, it suggests an ideal buying opportunity.
Current Price Momentum
However, the entire cryptocurrency market is struggling to gain momentum due to recent profit-taking, and the same is true for XRP.
Currently, XRP is trading close to $3.15, with the price inching down by 0.50% over the past 24 hours. However, during the same period, investors and traders found the price attractive, causing trading volumes to surge by 110%.
XRP Technical Analysis
According to expert technical analysis, XRP appears to be consolidating in a tight range and holding at key levels, remaining stable during price drops, unlike other cryptocurrencies, which makes it bullish.
Looking at the daily chart, XRP’s relative strength index (RSI) is below the overbought zone, indicating that the asset has plenty of room to surge higher and break out of the consolidation.
XRP Price Prediction
Based on recent price action and historical price momentum, if XRP breaks the upper limit of the consolidation area and closes the daily candle above $3.30, it has a high chance of surging 36% to $4.50 levels in the future.
However, the bullish price action and $250.67 million in outflows from the exchange hint that a massive upward rebound could happen soon.
