According to Coinglass's on-chain indicator report, despite continuous price adjustments, Ripple's native token XRP still has not attracted attention from whales and investors.
The potential reason for this attraction may be XRP's recent performance, which has surged by 370% in the past month.
$288 million of XRP outflow
According to CoinGlass's XRP spot inflow/outflow data, there has been a massive outflow of $288 million in tokens from exchanges since the beginning of December.
In the cryptocurrency space, such a large outflow refers to withdrawing assets from exchanges to wallet addresses for long-term holding.
This indicates a potential buying opportunity, suggesting possible upward momentum and alleviating selling pressure.
Traders' bearish sentiment
Aside from extracting assets for long-term holding, traders appear to remain neutral as they may be waiting for XRP's breakout.
Data shows that at the time of writing, the XRP long/short ratio is 0.98, reflecting traders' bearish sentiment. 50.8% of top traders hold short positions, while 49.2% of top traders hold long positions.
XRP recently broke through the inclined trend line on the hourly time frame and is facing resistance at the level of $0.247.
Based on recent price movements and historical momentum, if XRP breaks this resistance level and closes above $2.50 on the daily chart, it is highly likely to rise by 18% in the coming days, reaching a level of $2.90.
On the positive side, altcoins are above the 200 exponential moving average (EMA) on both lower and higher time frames, indicating an upward trend. Meanwhile, XRP's relative strength index (RSI) is at 40, close to the oversold zone.
When an asset's RSI is close to the oversold zone, it typically indicates that there is significant upward potential for that asset in the coming days.
XRP's price momentum
At the time of writing, XRP is trading close to $2.40, with a price drop of 7.2% in the past 24 hours.
During the same period, its trading volume decreased by 25%, indicating a reduction in participation from traders and investors compared to the previous days.