In the past 24 hours, XRP price has been sideways around $2.40, indicating almost equal strength between bulls and bears. However, XRP traders seem to believe that the token is likely to rise further.
This sentiment comes amidst multi-million dollar outflows. Will the altcoin prevail?
XRP Bulls Unaffected by Negative Signals
According to Coinglass, the XRP long/short ratio has risen above 1. The ratio measures traders’ expectations. When the ratio is above 1, it means there are more traders in long positions than short.
On the other hand, a reading of less than 1 indicates the dominance of short positions, who are betting on a decline in price. Therefore, the current ratio is skewed towards bullish dominance, indicating that many traders expect XRP price to increase by 10% over the past seven days.
Interestingly, this development comes amid a wave of outflows. As of writing, Coinglass data shows $40 million in outflows from the XRP spot market over the past two days.
Typically, increased spot inflows reflect direct investment in the asset at current market prices, indicating a strong sense of confidence. These trends often boost demand, which can put upward pressure on the altcoin’s price.
However, when outflows increase, it indicates a decrease in demand for the cryptocurrency. If this continues, it could put downward pressure on the XRP price. However, as mentioned above, XRP traders do not expect the altcoin to see a major correction.
XRP Price Prediction: Chart Remains Bullish
On the daily chart, XRP price maintained a bull flag formation. A bull flag, which resembles a flag on a pole, is an important pattern in analysis. It appears after a sharp upward price movement and indicates the possibility of another strong rise.
This pattern usually acts as a bullish continuation, anticipating further price increases driven by continued trading volume. Therefore, if Ripple sees increased buying pressure and volume continues to rise, the price could rise to $3.25.
If the altcoin sees a strong demand wave, this target could be higher, and Ripple price could trade above $4. However, a break below the lower trend line of the flag could invalidate this prediction. If that happens, Ripple could drop to $1.40.