XRP price prediction for January 2nd, is the breakout likely?
After an impressive 12% rally, Ripple Labs native XRP is set to continue its upward momentum, as it nears a major breakout. Amidst this growing trend, the participation of traders and investors has increased significantly, as revealed by chain metrics, including open interest, long/short ratio and flow/flow data.
The demand of traders is increasing.
However, the data shows that due to the market sentiment around XRP, traders are increasing their bets on long positions. Meanwhile, long-term holders are selling off their holdings, potentially profiting after a massive stockpile during the downturn.
Will long-term holders cash out?
Data from XRP shows that the price has broken out of a consolidation and is trending higher, with exchanges entering a record high of $57.55 million worth of XRP. Notably, this is the first time exchanges have seen XRP flow in the past two weeks.
In cryptocurrency, inflow refers to the movement of assets from a wallet to an exchange, often indicating the possibility of a sell-off or a future drop in price. However, recent inflows are significantly lower than what long-term holders have accumulated over the past two weeks.
XRP technical analysis and upcoming levels
According to expert technical analysis, XRP is poised to break out of the bullish flag and polar price action pattern on the daily time frame. However, the price is currently facing resistance near $2.34.
XRP price prediction
Recent price action suggests that if XRP breaks this resistance and confirms a break from the bullish pattern, the asset could rise by 80%, reaching $4.45 in the future.
On a positive note, the asset's Relative Strength Index (RSI) is currently at 56.85, below the oversold territory, indicating that XRP has enough room for significant growth in the coming days.
Current price momentum
At press time, XRP is trading near $2.33 and is up 11% in the last 24 hours. During the same period, the transaction volume increased by 30 percent, which can be attributed to the high participation of traders and investors.
