Investors appear to be buying XRP, but currency outflows are surging and the altcoin will face resistance at $0.55 if it heads north.
XRP has seen some consolidation over the past week, with recent volatility on the price chart being minimal. However, market trends may change in the coming days.
Now, does this mean XRP bulls are preparing for a rally?
XRP is waiting for the golden cross!
XRP, the world’s seventh-largest cryptocurrency at the time of writing, has seen only small price movements over the past 24 hours. The altcoin was trading at $0.5474 on the chart. However, things could soon turn bullish for cryptocurrencies. According to AMBCrypto analysis, this seems to be the case as XRP seemed to be waiting for a golden crossover, as suggested by the MA cross technical indicator.
If a golden cross occurs, it means that the price is likely to rise. Apart from the crossover, an ascending triangle pattern was also found on the daily chart of the token.
A breakout above this mark could signal the beginning of a massive bull market.
Source: TradingView
Therefore, it is worth checking XRP’s on-chain data to properly assess the possibility of a bullish breakout or golden cross.
What do you expect from XRP?
An evaluation of Santiment’s data reveals that XRP’s weighted sentiment remains primarily in the positive zone. This meant that bullish sentiment towards the token was dominant across the market.
Other indicators are also pointing to rising prices, making the outlook bullish. For example, the MVRV ratio has improved significantly.
The XRP network has grown rapidly. This means more addresses have been created to transfer tokens. In addition to that, XRP exchange outflows have increased. An increase in this indicator means that buying pressure is also increasing. This often causes the price on the chart to rise.
Source: Santiment
A check of Coinglass’ data reveals another optimistic indicator. We have noticed that the long/short ratio of the token has increased in the past few hours. This indicates that there are more long positions than short positions in the market, which is a bullish development.
Several other technical indicators on the price chart also point to a successful bullish breakout in the coming days.
For example, MAC has shown a clear bullish advantage in the market. However, the bears could dominate the market as the token Money Flow Index (MFI) recorded a decline.
Read XRP Price Prediction 2024-2025
Finally, we checked the XRP liquidation heatmap to look for upcoming resistance levels in case a bullish breakout occurs.
According to our analysis, if a bullish breakout occurs, it will be important for the token to rise above $0.55. This is the case because at this level liquidation amounts increase rapidly. However, if the bears take control, XRP could fall to $0.53 in the short term.
Source: Coinglass
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