XRP Consolidation Ends, Bull Rally Coming Soon?
In the year On October 15, 2024, Ripple's native token XRP broke out of its extended consolidation zone and is poised for a major upside rally. For almost two weeks, XRP has been trading in a narrow range. During this period, whales and institutions acquired XRP tokens in large numbers, following the listing of a spot exchange traded fund (ETF) in the United States.
XRP current price momentum
At press time, XRP is trading near $0.548 and has gained over 3.6% in price over the past 24 hours. During the same period, trading volume increased by 90 percent, indicating higher participation related to the strengthening of traders and investors.
XRP technical analysis and upcoming level
According to CoinPedia's technical analysis, XRP looks bullish and is currently facing resistance at the 200-day Exponential Moving Average (EMA). Despite rising from the extended consolidation zone, XRP may struggle until it breaks the 200 EMA and closes the daily candle.
Based on the recent price performance, if XRP closes the daily candle above the $0.5580 level, there is a possibility that it will rise by 17% to reach the $0.65 level or higher if the sentiment remains positive. XRP's Relative Strength Index (RSI) is currently in an oversold position, suggesting a possible price reversal in the coming days.
Bullish On-Chain Indicators
XRP's bullish outlook is further supported by chain metrics. According to on-chain analytics firm Coinglass, the XRP Long/Short ratio currently stands at 1.039, indicating strong bullish sentiment among traders. Additionally, the futures open interest increased by 9.5% in the last 24 hours and 3.9% in the last four hours.
This high open interest suggests growing trader interest in XRP, which may be associated with long positions rather than short positions, as sentiment has quickly reversed. Combining these bullish chain metrics with XRP technical analysis, it looks like bulls are currently dominating the asset and could trigger a significant upside rally in the coming days.
