In this bloodbathed cryptocurrency market, Ripple Labs’ native token XRP seems to have controlled itself and avoided a major price drop as it holds a crucial support level. For XRP, the $2.20 support level plays an important role. Since the beginning of December 2024, the altcoin has reached this level more than four times and experienced an upside rebound each time.
This time, however, the sentiment seems similar as prices have already started to rise.
Rising interest in XRP among long-term holders
The current market sentiment seems to be quite negative as the market has witnessed $1.18 billion in cryptocurrency liquidations. Such large-scale liquidations have created panic among traders and investors, discouraging them from staying and participating in the asset.
$220 million in XRP outflows
Despite the concerns, traders and long-term holders appear to be optimistic about XRP as they have purchased millions of dollars worth of tokens during the price drop, according to data from on-chain analytics firm Coinglass. XRP spot inflow/outflow data shows that exchanges have witnessed a sustained and large outflow of XRP worth $220 million.
Despite the ongoing price drop, this outflow shows that XRP has a bullish outlook as long-term holders still believe in the coin. This explains why exchanges are experiencing a large outflow of tokens.
In the context of cryptocurrencies, “outflows” refer to the movement of assets from exchanges to the wallets of long-term holders, signaling a potential upside rally and an ideal buying opportunity.
XRP Technical Analysis and Upcoming Levels
According to CoinPedia’s technical analysis, XRP is looking bullish as the price shows signs of reversing from the critical support at $2.20. Based on the recent price action, the altcoin is close to a buy zone where it usually experiences an upside rally.
If XRP holds the $2.20 support, there is a high chance that it could surge 13% to reach the next resistance level of $2.50 in the near future. On the other hand, if XRP breaks below the support and closes the daily chart below $2.20, we could see XRP drop to $2 or even lower in the future.
Current Price Momentum
At press time, XRP is trading near $2.30, with a price increase of more than 2.70% over the past 24 hours. During the same period, its trading volume has increased by 7%, indicating increased participation from traders and investors.