- XRP liquidations at $2.2 highlighted a profit-taking phase as bullish momentum built on the charts
- A break above $3.3 could push XRP to its 2017 high, with key data supporting this rally
The crypto market has shown interest in XRP’s price action, especially after its recent slight decline to $2.2. During this phase, CryptoQuant reported that more than $4 million worth of XRP short positions were liquidated.
Source: CryptoQuant
However, despite this correction, XRP quickly resumed its upward trajectory. According to CryptoQuant’s reports, waning foreign exchange outflows after the profit-taking session indicated a temporary pause in accumulation.
However, at the time of writing, the market seemed to be gearing up for the next step, with XRP’s Open Interest (OI) recently reaching all-time highs.
Source: CryptoQuant
Consolidation and breakout in the weekly charts
On the weekly chart, the price of XRP appeared to consolidate within a symmetrical triangle pattern before breaking out in late November. This outbreak led to a staggering 300% increase.
Source: TradingView
While impressive, this increase is still far from the 1000% rally we saw during the 2021 bull run.
If XRP replicates its previous bullish momentum, the $7.7 level could be within reach. However, traders are keeping a close eye on the resistance at $3.3 – a key hurdle that could determine the next leg of this rally.
Signs of strength on the daily chart
The daily chart painted an optimistic picture. After the recent retracement to $2.2, XRP quickly regained its bullish momentum. This price rebound hinted at strong buyer interest even during periods of consolidation on the price charts.
Source: TradingView
Metrics such as rising OI and reduced foreign exchange outflows lend weight to the possibility of further gains. These indicators together suggested that traders may be positioning themselves for a possible breakout.
Can XRP Rise Above $3.3?
Breaking the resistance at $3.3 is crucial for the coin to maintain its bullish trajectory. If successful, the altcoin could target higher levels and potentially reach $7.7 if market conditions resemble the 2021 rally.
Read Ripple’s [XRP] Price forecast 2024–2025
At the time of writing, XRP’s price action and on-chain metrics offered some promising signals. Maintaining this momentum will depend on breaking through key resistance levels and continued market support.
Credit : ambcrypto.com
