XRP's recent price surge has captivated the crypto market, prompting a closer look at both significant on-chain whale activity and compelling technical indicators. Despite some cautionary signals from large token movements, the altcoin's chart patterns suggest potential for further upside, keeping traders on edge about its immediate future.
Whale Activity and Market Caution
Recent on-chain data indicates substantial movement of XRP, with whales transferring over 33 million tokens, valued at $108 million, to Coinbase within a 24-hour period. This influx of XRP onto centralized exchanges has led to an increase in exchange reserves. Historically, such significant transfers often signal that long-term holders may be preparing to take profits, potentially increasing short-term selling pressure and raising concerns about the rally's sustainability.
Technical Outlook Points to Potential Upside
Despite a recent 15% dip in trading volume, XRP has demonstrated resilience, trading around $3.25 after an impressive 20% rally over the past week. Technical analysis reveals several bullish patterns that could propel the price higher. XRP has successfully broken above a descending trendline and cleared a bullish flag pattern on its charts. Furthermore, an inverted head-and-shoulders pattern appears to be forming, which, if confirmed, could target a 15% price uptick, potentially reaching $3.80. The Relative Strength Index (RSI) at 59 also suggests that bulls still have room to push the price.
Liquidation Data Confirms Bullish Dominance
Analysis of liquidation clusters further reinforces the prevailing bullish sentiment. Key liquidation levels are identified around $3.134 on the lower side and $3.334 on the upper side. Within these zones, long positions significantly outweigh short positions, with $170.01 million in longs against just $24.85 million in shorts. This imbalance indicates strong conviction among XRP bulls, suggesting that they are currently dominating market positions and may be poised to extend the altcoin's price rally.
