XRP, the native token of Ripple, has achieved a significant milestone by crossing the $2 level for the second time since Jan 2018. With its impressive performance, it seems likely that the bulls will carry this rally until it reaches the $3 mark.
Following XRP’s latest achievement, participation from whales and investors has skyrocketed and is raising one common question – Will this rally continue, or is there a chance of a price correction in the coming days?
The on-chain analytics firm Coinglass recently reported that amid the ongoing bull rally, whales and institutions have been consistently dumping millions of dollars worth of XRP onto exchanges. According to Coinglass’s XRP spot inflow/outflow data, exchanges have witnessed a significant inflow of $256.30 million in the past three days.
This substantial inflow suggests that whales and institutions have transferred their holdings to exchanges. In the cryptocurrency landscape, such inflows typically indicate a potential sell-off and an impending price decline.
In addition to whale participation, traders appear more optimistic, strongly betting on long positions, as indicated by Coinglass. At press time, the XRP Long/Short ratio on the four-hour timeframe stands at 1.98, indicating a strong bullish sentiment among traders.
Currently, 66.5% of top traders across exchanges hold long positions, while 33.5% hold short positions. This data indicates that, in the short term, bulls are dominating the altcoin, which could support XRP in continuing its rally toward $3.
An analysis of these on-chain metrics suggests that bulls are currently in control, potentially supporting XRP’s price and ongoing rally. However, the activity of whales and institutions, along with the $256.30 million worth of XRP offloaded, signals a potential price correction in the coming days.
According to CoinPedia’s technical analysis, XRP has broken through the highly anticipated resistance level of $2. Following this breakout, there is a strong possibility that it could soar to $3.15 in the coming days. However, the price could experience a minor correction or a breakout retest before the rally continues toward the $3 mark.
Currently, XRP is trading near $2.17 and has registered a price gain of over 15% in the past 24 hours. During the same period, its trading volume decreased by 14%, indicating lower participation from traders and investors compared to previous days.
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