The post Time to Buy XRP? $315 Million Flows Out of Exchanges appeared first on Coinpedia Fintech News
XRP, the native token of Ripple Labs, is now poised to continue its upside momentum after facing selling pressure in recent days. This positive outlook for XRP is potentially driven by bullish price action, rising interest from whales and traders, and significant withdrawals from exchanges.
XRP’s Price Momentum
Despite this bullish outlook, XRP has registered a price drop of 3% in the past 24 hours and is currently trading near $2.40. Meanwhile, interest from whales and traders has resulted in a 12% rise in trading volume during the same period, along with a significant withdrawal of tokens from exchanges, as reported by an on-chain analytics firm.
$315 Million XRP Outflow
According to the on-chain analytics firm Coinglass, XRP spot inflow/outflow data shows that exchanges across the cryptocurrency market have witnessed a significant $315 million worth of XRP outflow.
The technical term “outflow” in cryptocurrency refers to the flow of assets from exchanges to wallets, indicating a potential buying opportunity, reducing selling pressure, and suggesting a possible upside rally in the coming days.
The last time exchanges witnessed a notable inflow, XRP’s price dropped by 20%. Now, it’s happening in the opposite direction, hinting at a potential upside rally.
XRP Technical Analysis and Upcoming Level
According to expert technical analysis, XRP recently broke out from a descending trendline but is currently struggling to rally due to strong resistance near the $2.45 level. Based on recent price action and historical momentum, if the altcoin breaches and closes a daily candle above the $2.45 level, there is a strong possibility that XRP could soar by 18% to reach the $2.90 level in the coming days.
When combining these metrics with technical analysis, it appears that bulls are currently dominating the asset, which could support XRP in continuing its upside momentum and reaching a new high in the coming days.