XRP Forms Morning Star at Key Retest, Eyes on $3.5 Target

XRP, the native token of Ripple Labs, appears to be turning bullish after months of downtrend. Amid ongoing market uncertainty, XRP has recently broken out of key resistance levels, including both the descending trendline and the cup-and-handle price pattern.

XRP Price Action and Upcoming Levels

Following the breakout, the asset has successfully retested and formed a bullish Morning Star candlestick pattern at the support level, which was previously a resistance level. According to expert technical analysis, XRP now appears bullish, and if it holds above the $2.35 level, there is a strong possibility it could soar by 38% to reach $3.40 in the coming days.

Despite the overall market downturn, XRP has remained above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend and attracting investors and long-term holders.

Current Price Momentum

XRP is currently trading near $2.43, having registered a price surge of over 1.20% in the past 24 hours. However, during the same period, its trading volume jumped by 45%, indicating increased participation from traders and investors compared to previous days.

Major Liquidations Levels

With the bullish price action, traders appear to be following the trend and are strongly betting on the long side, as reported by the on-chain analytics firm Coinglass. Data reveals that traders are currently over-leveraged at $2.40 on the lower side and $2.50 on the upper side. In the past 24 hours, they have built $45 million in long positions and $33.5 million in short positions.

When combining this on-chain metric with the technical analysis, it appears that bulls are currently dominating the asset and could support the XRP to reclaim its recent all-time high.