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Ripple: Will bears push XRP to $2.10? – Data suggests…

2min Read

XRP could drop by 13% to reach the $2.10 level if it closes a four-hour candle below the $2.50 mark.

XRP traders brace for Volatility as key levels are tested
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  • XRP has broken down an ascending triangle price action pattern and its $2.50 support.
  • XRP traders were over-leveraged at $2.40 on the lower side and $2.55 on the upper side. 

Ripple[XRP] appears to be shifting its trend from upside momentum to a downtrend amid ongoing market uncertainty.

At the time of writing, with a 5% price drop, the asset has breached its prolonged support and is poised for a massive price drop. 

XRP’s technical analysis and price prediction 

According to AMBCrypto’s technical analysis, XRP turned bearish on the four-hour timeframe after breaking down from an ascending triangle pattern.

This breakdown caused a breach of the crucial $2.50 support level. The breakdown of both horizontal support and the triangle price action partially confirms that XRP could experience a significant decline.

XRP technical analysis and price prediction 

Source: TradingView

Based on recent price action, if the asset closes a four-hour candle below the $2.50 mark, there is a strong possibility of a 13% drop to the $2.10 level in the coming days.

Meanwhile, XRP’s Average Directional Index (ADX) was at 20, indicating weak strength, which could further support this bearish outlook.

Current price momentum

At press time, XRP was trading near $2.45, having dropped over 5% in the past 24 hours. However, during the same period, its trading volume surged by 70%.

This surge indicates increased participation from traders and investors compared to the previous day.

A rise in trading volume isn’t necessarily a bullish sign, as it reflects both bullish and bearish activity, including position liquidations, token accumulation, and token dumping.

On-chain metrics mixed sentiment 

Looking at the current market sentiment, it appears that investors and long-term holders are accumulating XRP, as revealed by the on-chain analytics firm Coinglass. 

Data from Spot Inflow/Outflow showed an outflow of over $13.65 million worth of XRP tokens in the past 24 hours.

This indicates potential accumulation that could drive upside momentum and buying pressure.

XRP Spot Inflow/Outflow

Source: Coinglass

However, the prevailing market sentiment suggests that this may not be enough to trigger a significant XRP rally.

XRP traders’ over-leveraged positions 

Besides the bullish outlook from long-term holders, the major liquidation levels, at press time, were $2.40 on the lower side and $2.55 on the upper side.

Traders were over-leveraged at these levels, as revealed by Coinglass data.

XRP Exchange Liquidation Map

Source: Coinglass

If market sentiment remains unchanged and the price drops below $2.40, nearly $35.50 million worth of long positions will be liquidated. Conversely, if sentiment shifts and the price rises to $2.55, over $40 million worth of short positions will be liquidated.

These on-chain metrics and technical analysis show that bears currently dominate the market. This dominance could push XRP lower in the coming days.

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Vivaan Acharya is a Crypto-Economist and Journalist at AMBCrypto who brings a rare depth of financial and economic expertise to the world of digital assets. He holds a Master’s in Economics from the prestigious University of Delhi and has over five years of experience analyzing technology and financial markets. His foray into the blockchain space began in 2018, marked by his prescient Master's thesis, "Payments and Stablecoin Integration in Banking," which showcased his early understanding of crypto's potential to disrupt traditional finance. Before specializing in crypto, Vivaan honed his skills in rigorous data and technical chart analysis at a major national financial daily, where he covered corporate earnings and market trends. At AMBCrypto, Vivaan applies this powerful blend of classical economic training and seasoned financial journalism to his work. He is an expert in: 1. Bitcoin and Altcoin Market Analysis 2. Stablecoin Ecosystem Development, and 3 Emerging Crypto Regulations. Known for his clear, no-nonsense approach, Vivaan translates robust research into straightforward, actionable insights. He is dedicated to demystifying the complexities of blockchain finance, empowering readers to confidently navigate the rapidly evolving digital economy.
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