XRP bulls were dominant last week as the token’s price surged double digits. However, the bears took control of the market in the past 24 hours and pushed XRP down by 3%. But investors shouldn’t lose hope, as the XRP price might soon gain upward momentum.
XRP’s Recent Breakout
Thanks to the 22% weekly surge, the XRP price at press time was $3.14. This allowed the token to break above a bullish pattern. Ali Martinez, a popular crypto analyst, posted a tweet pointing out this development. Martinez mentioned that Ripple’s value has jumped above a bull flag pattern. Such breakouts often results in price hike, which on this occasion could push XRP above $4.4.
In fact, investors are showing confidence in the token. XRP’s exchange outflow increased over the last seven days—a sign of raising buying pressure. The big-pocketed players in the market are also actively trading the token, which was evident from its high whale transaction count.
Apart from this, Hyblock Capital’s data also revealed another bullish metric. The token’s buy volume reached 100 on the 20th of January. For starters, a number closer to 100 means that buying activity is high.
What Derivatives Metrics Suggest
While assessing crypto prices, derivatives metrics also provide crucial inputs. As per Coinglass’ data, the token’s long/short ratio registered an uptick in the 24-hour timeframe.
This meant that there are more long positions in the market than short positions—signaling that bullish sentiment is rising. This also supported the possibility of a continued price hike, which can kickstart a bull rally above $4.
Odds of XRP Reaching $4
The technical indicator MA Cross remains bullish as the 9-day EMA was resting well above the 21-day MA. interestingly, at the time of writing, XRP price was testing the 9-day MA resistance.
If buying activity continues and the market condition supported, then it won’t be ambitious expecting the token to break this resistance. However, it will be critical for XRP also go above its resistance at $3.2, which it failed to do last week.
Conclusion
XRP has immense potential going forward. Not just because it’s one of the largest altcoin, but also for the utility it brings along. Ergo, this latest 3% setback might just be a short-term phenomenon and if bulls take back control, the chances of XRP touching $4.4 are high.
The post XRP Price Drops 3%, Calm Before a Storm? appeared first on CoinGape.
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