After forming a bullish price action pattern, Ripple [XRP] has been under widespread attention from whales and institutions.
Moreover, Bitcoin [BTC] has been driving the entire cryptocurrency market to higher levels. As Bitcoin approaches the $100,000 mark, market sentiment has shifted from consolidation to an upward trend.
XRP whales acquired tokens worth $124 million.
In this bullish sentiment, on November 20, a cryptocurrency giant transferred nearly 111 million XRP tokens worth $123.59 million from Binance to an unknown wallet.
This large-scale withdrawal may be due to bullish market sentiment and XRP's strong price performance.
Additionally, XRP reserves on exchanges continue to decline, indicating that retailers, whales, and institutions are withdrawing tokens in large amounts.
This is a bullish signal as it reduces the likelihood of asset price declines.
Technical analysis and key levels for XRP.
AMBCrypto's technical analysis shows that XRP is forming a bullish flag price pattern on the four-hour timeframe. It is about to break out.
If XRP breaks this pattern and closes above $1.15, it could surge 63% in the coming days, reaching $1.90.
XRP's Relative Strength Index (RSI) and 200 Exponential Moving Average (EMA) show bullish momentum. This highlights the potential for an upward movement in the coming days.
Increase in open interest.
However, on-chain indicators further support the bullish outlook for the altcoin.
According to on-chain analysis firm Coinglass, traders are actively participating in trading activities, leading to a significant increase in open interest (OI).
In the past 24 hours, XRP's OI increased by 4.5%, with a 2.78% increase in the past 4 hours. Growing interest in this altcoin indicates a bullish trend.
Key liquidation levels and market sentiment.
Checking traders' current bets on XRP, the data shows key liquidation levels at $1.069 below and $1.135 above.
According to Coinglass, traders are over-leveraged at these levels.
If market sentiment remains bullish and the price rises to $1.135, short positions worth nearly $15.76 million will be liquidated.
Conversely, if sentiment changes and the price drops to $1.069, long positions worth nearly $49 million will be liquidated.
The liquidation data indicates that over the past 24 hours, long positions holding bullish stance dominated the asset compared to short sellers.
As of the time of writing, XRP is trading at nearly $1.13, with a price increase of over 3.2% in the past 24 hours.
During the same period, its trading volume increased by 25%, indicating that trader and investor participation has improved due to the bullish outlook.
