Over the past 24 hours, XRP has been hovering around $2.40, indicating that buying and selling pressure are roughly equal. However, XRP traders seem to believe that the token has the potential to go higher.
This sentiment comes amid millions of dollars in outflows from the spot market. Will this altcoin survive the test?
XRP Bulls Unshaken by Negative Signals
According to data from Coinglass, XRP’s Long/Short ratio has risen above 1. This ratio measures traders’ expectations. When the index is above 1, it means that more traders are holding long positions than short positions.
Conversely, if the index is below 1, it reflects the dominance of bears, i.e. those betting on a price drop. Therefore, the current ratio is tilted towards the bulls, indicating that many traders expect the XRP price to rise further after a 10% increase in the past 7 days.
Interestingly, this development comes amid a large wave of withdrawals in the spot market. According to data from Coinglass, the XRP spot market has seen $40 million worth of outflows over the past two days.
XRP Long/Short Ratio | Source: Coinglass
Typically, inflows into the spot market reflect direct investment in the asset at current market prices, indicating strong bullish sentiment. This trend often increases demand, which can put upward pressure on altcoins.
However, as outflows increase, it indicates that demand for the cryptocurrency is decreasing. If this situation persists, it could put downward pressure on XRP. But as mentioned, XRP traders still do not expect the altcoin to suffer a major correction.
XRP Net Flow | Source: Coinglass
XRP Price Prediction: Charts Still Support Uptrend
On the daily chart, the XRP price remains in a bullish flag pattern. The bullish flag pattern, which resembles a flag hanging on a pole, is an important pattern in technical analysis. It appears after a strong price increase and signals the possibility of another strong uptrend continuation.
Typically, this pattern acts as a bullish continuation signal, predicting further price increases if the trading volume is maintained. Therefore, if buying pressure increases and trading volume remains high, XRP price could surge to $3.25.
XRP/USDT daily chart | Source: TradingView
If the altcoin experiences a stronger wave of demand, the price target could be higher, with XRP likely trading above $4. However, if the price falls below the support line of the bullish flag pattern, this prediction could be invalidated. In that case, XRP could fall to $1.40.
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