According to Coinglass's on-chain metrics report, despite ongoing price adjustments, Ripple's native token XRP has still 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 outflow of XRP
According to CoinGlass's XRP spot inflow/outflow data, there has been a significant outflow of $288 million worth of tokens from exchanges since early 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.
Bearish sentiment among traders
Apart from extracting assets for long-term holding, traders seem to remain neutral as they might be waiting for XRP's breakout.
Data shows that as of the time of writing, the XRP long/short ratio is 0.98, reflecting the bearish sentiment among traders. 50.8% of top traders hold short positions, while 49.2% hold long positions.
XRP recently broke above the sloping trend line in 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 very likely to rise by 18% in the coming days, reaching $2.90.
On the positive side, altcoins are above the 200 exponential moving average (EMA) in both lower and higher time frames, indicating an upward trend. Meanwhile, XRP's relative strength index (RSI) is at 40, close to the oversold area.
When an asset's RSI approaches the oversold area, it usually indicates that there is significant upside potential for the asset in the coming days.
XRP's price momentum
As of the time of writing, XRP is trading close to $2.40, having dropped 7.2% in the past 24 hours.
During the same period, its trading volume decreased by 25%, indicating reduced participation from traders and investors compared to previous days.