XRP echoes 2024 rally setup as ETFs flip positive: Bulls and bears fight for control

Ripple [XRP] has been consistently hinting at a repetition of the 2024-style rally. However, every time these signals appear, they tend not to materialize.

Being optimistic, the more these signals appear, the more they tend to create more belief among holders.

Is a 2024-style rally unfolding for XRP?

Recently, XRP’s leverage flush echoed the 2024 setup as per an earlier analysis by AMBCrypto.

Now, the price action of the altcoin appears to be aligning with the leverage signal. Looking at the XRP price action in 2024, it started with a final bull trap, which also happened early this year. Then, a capitulation and accumulation window followed before an explosive rally.

However, XRP is currently in the same accumulation window, with bulls anticipating a breakout. If the pattern repeats, XRP could exceed $4 by year-end.

On the 4-hour chart, the altcoin was trading in a sideways market between $1.0301 and $1.1556. This consolidation aligns with the accumulation window, which is underway.

However, the MA Cross is hinting at further decline as social sentiment weakens. Despite that, the RSI Divergence has printed bullish signals.

The opposing signals delay the pattern playing out but also set the altcoin up for a bigger rally. Even the XRP ETF inflows have flipped to positive after five days of inactivity.

As per SoSoValue, XRP ETFs saw a net inflow of $592.47K. This was a bullish signal even though the capital was moderate. However, these signals were no guarantee for a rally.

Bulls and bears are still undecided

What was the reason as to why the rally was not certain?

Bulls and bears were still undecided. For instance, there were many two-sided liquidations on both long and short positions, as per CryptoQuant. As a result, XRP prices remained flat.

Additionally, the 14-day price range alongside Open Interest (OI) was compressing. Moreover, Funding Rates were neutral, indicating no party was controlling the price direction.

Spot liquidity was thinning on the Binance exchange as inflows and outflows continued to reduce. The Estimated Leverage Ratio (ELR) is still around this year’s low at 0.15. This indicates low financial risk exposure, a sign that bulls and bears are cautious.

Therefore, XRP is printing a 2024-style rally, but bulls and bears are yet to decide who wins the battle. Hence, the potential rally remains in waiting until a breakout happens.

Final Summary

• XRP’s price action hints at a potential 2024-style rally, but the altcoin continues to create lower levels. 
• Bulls and bears look undecided as Funding Rates were neutral while liquidations affected both shorts and longs.