coinpedia.org
-
If $XRP stays below this key support, it could decline 13% to $2.10 in the coming days.
-
Despite a bearish outlook, exchanges have witnessed an outflow of $15 million worth of $XRP tokens.
In the past few days, the overall cryptocurrency market has experienced a notable price drop, shifting market sentiment. Amid this, $XRP, the native token of Ripple Labs, failed to hold its crucial support level at the $2.50 mark and is now poised for a significant decline.
$XRP Technical Analysis and Upcoming Level
According to expert technical analysis, $XRP appears bearish as it has broken down from an ascending triangle pattern on the four-hour timeframe. This bearish outlook was further confirmed by breaching and closing a candle below the crucial $2.50 support level.
Based on recent price momentum and historical patterns, if the asset remains below this key support, it could drop by 13% to reach the $2.10 mark in the coming days.
In addition to the bearish price action, $XRP is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset is in a downtrend.
Current Price Momentum
$XRP is currently trading near the $2.46 level and has dropped over 3.80% in the past 24 hours. However, during the same period, its trading volume surged by 100%, indicating increased participation from traders and investors compared to previous days.
The 100% jump in trading volume isn’t necessarily a bullish sign. It typically occurs when an asset either breaks out or breaks down from a pattern, as traders actively participate to capture a major move. In this case, it was likely driven by the breakdown of the ascending triangle.
$15 Million Worth of $XRP Outflow
Despite this bearish outlook, investors and long-term holders appear to be accumulating the token, following the “Buy the Dip” strategy, as reported by the on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed a significant outflow of $15 million worth of $XRP tokens in the past 24 hours.
Such an outflow from exchanges indicates potential accumulation, which can create buying pressure and potentially slow down the price decline.