The post $62 Million XRP Offload Onto Exchanges, Sell Signal or What? appeared first on Coinpedia Fintech News
For the past few days, XRP, the native token of Ripple Labs, has been struggling to gain momentum, and data suggests it is likely to continue struggling in the coming days. This negative speculation is based on the recent activity of investors and long-term holders amid ongoing market uncertainty.
Bearish On-Chain Metrics
Data from the on-chain analytics firm Coinglass’s spot inflow-outflow metrics reveals that exchanges have witnessed an XRP inflow of a significant $62 million over the past 48 hours. This substantial inflow of XRP tokens onto exchanges indicates a potential dump, which may lead to a price decline and increased selling pressure.
In addition to the significant inflow, the long/short ratio, which measures trader sentiment, currently stands at 0.92, signaling a bearish outlook as short positions dominate.
However, this is happening during a period where the asset has been experiencing continuous price consolidation over the past six days.
XRP Technical Analysis and Price Prediction
According to expert technical analysis, XRP appears neutral until it breaks out of the ongoing consolidation between the $2.90 and $3.30 levels.
Based on recent price momentum, if XRP breaches the consolidation and closes a daily candle above the $3.32 level, there is a strong possibility it could soar by 32% to reach the $4.50 level in the coming days. Conversely, if XRP breaks down from the consolidation and closes a daily candle below the $2.85 level, it is likely to decline by 10% to reach the $2.58 level in the future.
On the positive side, the Relative Strength Index (RSI), currently at 65 indicating XRP is approaching overbought levels but still has room for further upward momentum.
Current Price Momentum
Despite the bearish outlook, XRP is currently trading near $3.25 and has experienced a price surge of 1.60% in the past 24 hours. However, during the same period, its trading volume dropped by 35%, indicating lower participation from traders and investors compared to the previous day.