After breaking out of a prolonged consolidation, XRP, the native token of Ripple Labs, appears to be struggling as whales and long-term holders have been dumping XRP tokens onto exchanges.
$34 Million Worth XRP Inflow Onto Exchanges
Today, on February 14, 2025, the on-chain analytics firm Coinglass revealed that exchanges have seen an inflow of a significant $34 million worth of XRP in the past 24 hours.
In the cryptocurrency market, inflow refers to the transfer of assets from long-term holders’ wallets to exchanges, which hints at a potential dump. Such inflows onto exchanges have the potential to cause selling pressure and lead to further price drops.
Current Price Momentum
However, this bearish move by investors and long-term holders comes after XRP price soared by 11% in the past 24 hours, and these holders might have seen this as an ideal level for profit booking.
Currently, XRP is trading near $2.70, and at the same time, due to the impressive upside momentum, its trading volume has jumped by 50%, indicating rising investor and trader participation in the past 24 hours.
XRP’s Major Liquidation Level
Despite bearish activity from investors and long-term holders, intraday traders are betting on the bullish side. Data revealed that intraday traders are currently over-leveraged at $2.497 on the lower side and $2.80 on the upper side.
At these levels, both buyers and sellers have built $143 million worth of long positions and $55 million worth of short positions. These over-leveraged positions hint that bulls are currently dominating the asset.
XRP Price Action and Upcoming Level
According to expert technical analysis, XRP is currently facing mild resistance near the $2.80 level, which is causing trouble for the asset by creating selling pressure and further price drops.
Based on recent price action and historical patterns, if XRP breaches the resistance level and closes a daily candle above the $2.85 level, there is a strong possibility it could soar by 20% to reach the $3.35 level in the coming days.
Credit: Source link
