XRP

Ripple’s XRP recently soared to a record-breaking $3.41 on January 16. This surge has drawn significant attention but has also triggered substantial profit-taking among traders. With selloffs mounting, the token’s rally faces potential reversal.

Profit-Taking Weakens XRP Rally

During Saturday’s trading session, XRP saw spot market outflows totaling $74 million, marking its largest single-day outflow in 30 days. This trend of profit-taking began soon after XRP reached its peak.

Spot outflows often signal that investors are selling or moving assets, reflecting caution or reduced confidence. When such outflows are significant, they can increase selling pressure and push prices lower, potentially creating a downward spiral.

Adding to the concerns, XRP’s daily trading volume has dropped sharply. Over the past 24 hours, the token’s price rose by 2%, but its trading volume fell by 26%, creating a negative divergence.

What Does Negative Divergence Mean for XRP?

Negative divergence occurs when an asset’s price increases while its trading volume declines. This indicates that the rally lacks widespread market support, weakening the uptrend. XRP’s recent surge may not hold, making a price reversal or consolidation likely.

XRP Price Prediction

As of now, XRP is trading at $3.19. If the profit-taking trend continues, the price could drop further to test support at $2.45.

On the other hand, if XRP sustains its current momentum, it could revisit its all-time high of $3.41 and potentially rally beyond that level.

XRP has been consolidating below critical resistance at $2.73 for over a month. This prolonged stagnation has frustrated investors, leaving traders uncertain about the altcoin’s next move.

Traders Lose Confidence in XRP

XRP Futures Open Interest (OI) dropped by $1 billion in the last 24 hours. Just a day earlier, OI had climbed to $2.9 billion, fueled by hopes of a breakout. However, when XRP failed to gain momentum, traders began pulling back their funds.

This shift indicates growing bearish sentiment among investors. The decline in OI suggests skepticism over XRP’s ability to overcome its resistance, which could slow market activity further.

Bearish Indicators Emerge

XRP’s macro momentum also appears weak. The Price DAA Divergence, a key market indicator, is flashing a sell signal. This reflects reduced participation and stagnant price action. As a result, traders might start locking in profits, adding more downward pressure on the altcoin.

If selling pressure grows, XRP could struggle even more to escape its consolidation phase. Limited participation and cautious investors could stall any potential recovery until stronger market trends develop.

XRP Price Prediction: Breaking Out or Breaking Down?

Over the past month, XRP’s price has dropped 20%, yet it holds above the $2.00 support level. Despite this, the altcoin remains stuck under the $2.73 resistance, unable to initiate a rally.

• Bearish Scenario: If the current trend persists, XRP risks losing its $2.00 support. This would further erode investor confidence and extend its consolidation phase.
• Bullish Scenario: If market sentiment shifts positively, XRP could break above $2.73. A successful breakout might drive the price toward its all-time high of $3.31, invalidating the bearish outlook and sparking renewed interest.

Ripple’s (XRP) price briefly dipped below $2 on December 10, causing concerns about the end of its upward trend. However, those fears were short-lived as XRP bounced back with an impressive 8% gain in the last 24 hours.

Key Indicators Support XRP Price Growth

Several lesser-known on-chain metrics suggest that XRP’s price rally may not be over yet. These indicators point to increased trading activity and growing market confidence.

Dormant XRP Tokens Return to Circulation

The Mean Dollar Invested Age (MDIA), an important on-chain metric, shows promising signs for XRP. MDIA measures the average age of tokens held on the blockchain, weighted by their purchase value.

A high MDIA often signals market stagnation, as stakeholders hold onto their tokens without trading. Currently, XRP’s MDIA has dropped to a notably low level. This indicates that previously dormant tokens have returned to circulation, increasing liquidity and boosting market activity—a bullish signal for the cryptocurrency.

Rising Taker Buy Ratio Reflects Buyer Confidence

Another bullish indicator is the Taker Buy Ratio, which measures the share of buy orders in the derivatives market. A ratio above 0.5 indicates that buyers dominate trading activity.

According to CryptoQuant, XRP’s Taker Buy Ratio has climbed to 0.55, signaling increasing buying pressure. This upward trend hints at growing market optimism and the potential for further price gains. However, if the ratio dips below 0.5, it could suggest a bearish shift, requiring caution.

Technical Analysis: Bulls Push XRP Back on Track

On December 12, XRP’s price briefly fell below the 20 and 50 Exponential Moving Averages (EMA), hinting at a possible correction. However, bulls quickly regained control, pushing the price back above these key levels.

This recovery signals renewed bullish momentum, with XRP likely to climb toward $2.90 in the short term. If buying pressure continues to grow, the token could surge to $3.50. Conver

XRP has achieved a major milestone by breaking out above a significant triangular consolidation pattern. Its market cap has now surpassed a critical $146 billion resistance level, cementing its position as the third-largest cryptocurrency by market value.

Peter Brandt’s Bullish Shift on XRP

Renowned trader Peter Brandt, once a harsh critic of XRP, has surprised the crypto community with a newfound bullish outlook. Earlier this year, Brandt dismissed XRP, even predicting its value would collapse.

However, in a recent tweet, he called XRP’s chart:

This marks a notable reversal for the trader, though he clarified he remains personally invested only in Bitcoin and Solana.

XRP Nears All-Time High After 7 Years

XRP recently surged to $2.82, nearing its all-time high after seven years. The token’s impressive rally has also gained momentum due to Ripple ETF speculation and optimism surrounding SEC Chair Gary Gensler’s potential resignation.

Market sentiment remains positive, with analysts predicting further gains. XRP is now just 25% away from its all-time high, reinforcing hopes for continued bullish momentum.

XRP’s Impressive Weekly Gains

Over the past week, XRP has recorded a 36% gain, despite minor fluctuations. In the last 24 hours alone, its price increased by 6%, though it has since dipped slightly. As of now, XRP trades at $2.50, showing a 3.50% daily decline but a 2.56% weekly increase, according to CoinMarketCap.

What’s Driving XRP’s Rally?

Several factors are fueling XRP’s recent surge:

• Optimism about Ripple’s ETF approval.
• Positive developments in the ongoing Ripple vs. SEC case.
• Increased interest from traders and legal experts regarding potential regulatory shifts.

With growing momentum, many believe XRP’s rally is far from over.