- Investors appeared to buy XRP as currency outflows peaked
- Altcoin will face resistance at $0.55 as it heads north
XRP has consolidated somewhat over the past week, with the price chart showing minimal volatility as of late. However, there are chances that the market trend may change in the coming days.
Does this mean XRP bulls are preparing for a rally?
XRP awaits a golden cross!
XRP, the seventh largest cryptocurrency in the world at the time of writing, has only managed to make a marginal move over the past 24 hours. The altcoin was trade at $0.5474 on the charts. However, things could quickly turn bullish for the crypto. This seemed to be the case as, according to AMBCrypto’s analysis, XRP appeared to be waiting for a gold crossover as suggested by the MA cross technical indicator.
When a golden cross occurs, it means that the probability of a price increase is high. In addition to the crossover, we also found an ascending triangle pattern on the token’s daily chart.
A breakout above that level could trigger a major bull rally.
Source: TradingView
Therefore, it is worth checking XRP’s on-chain data to properly assess the likelihood of a bullish breakout or a golden cross.
What can you expect from XRP?
Our review of Santiment’s data showed that XRP’s weighted sentiment remained mostly in the positive zone. This meant that the bullish sentiment surrounding the token was dominant across the entire market.
Other metrics also looked bullish as they indicated a price increase. The MVRV ratio thus improved significantly.
XRP’s network growth was high, meaning more addresses were created to transfer the token. Moreover, XRP outflows increased. An increase in this measure means that purchasing pressure also increases. This often results in price increases in the charts.
Source: Santiment
Another bullish metric was revealed when we checked Coinglass facts. We noticed that the long/short ratio of the token has increased in the last few hours. This indicated that there were more long positions in the market than short positions – a bullish development.
A few other technical indicators on the price chart also pointed to a successful bullish breakout in the coming days.
For example, the MAC showed a clear bullish advantage in the market. However, the bears might as well take control of the market as the token’s Money Flow Index (MFI) registers a downward trend.
Read XRP’s price prediction 2024–2025
Finally, we checked XRP’s liquidation heatmap to look for any resistance levels in the event of a bullish breakout.
According to our analysis, it is crucial for the token to break above $0.55 if a bullish breakout occurs. This was the case because liquidations will increase sharply at that level. However, if the bears take over, XRP could drop to $0.53 in the short term.
Source: Coinglass
Credit : ambcrypto.com
