$62 Million XRP Loaded To Exchanges, Sell Signal Or What?
For the past few days, Ripple Labs native XRP has been struggling to gain traction, and data suggests it may continue to struggle in the coming days. This negative estimate is based on market volatility based on the recent activity of investors and long-term investors.
Bearish On-Chain Indicators
Data from on-chain analytics firm Coinglass shows that exchanges have seen a record $62 million inflow of XRP in the past 48 hours. This high volume of XRP tokens entering exchanges indicates the possibility of a dump, which will lead to price declines and increased selling pressure.
In addition to the significant flow of earnings, the long/short ratio, which measures trader sentiment, currently stands at 0.92, indicating a bearish outlook as short positions dominate.
But this has happened during the last six days when the asset has seen an uninterrupted price consolidation.
XRP technical analysis and price forecast
According to expert technical analysis, XRP looks neutral until it breaks out of the ongoing consolidation between the $2.90 and $3.30 levels.
Based on the recent price progress, if XRP breaks the consolidation and closes the daily candle above the $3.32 level, there is a strong possibility that it will rise by 32% to reach the $4.50 level in the coming days. On the contrary, if XRP breaks the consolidation and closes the daily candle below the $2.85 level, it will decrease by 10% to reach the $2.58 level in the future.
On the positive side, the Relative Strength Index (RSI), currently at 65, is approaching overbought levels for XRP but still has room for further upside.
Current price momentum
Despite the bullish outlook, XRP is currently trading near $3.25 and has experienced a 1.60% price increase in the last 24 hours. However, at the same time, the trading volume decreased by 35 percent, indicating that the participation of traders and investors is low compared to the previous day.
