- XRP surges and breaks out of a symmetrical triangle despite SEC case appeal speculations.
- Exchange outflows have dropped, but the long/short ratio suggests uncertainty in market.
Despite the many speculations over possible appeals from the SEC, XRP managed to break out from a symmetrical triangle resistance level at $0.605. This is a sign that the overall altcoin price action was bullish.
The breakup indicates an increase in buying momentum, whereby market participants are cashing in on upward market momentum. XRP resilience in light of the regulatory pressure is driving excitement among investors.
XRP exchange outflows drop after 24 September exodus
According to AMBCrypto’s analysis of XRP exchange outflows, the altcoin has witnessed a significant exodus of assets from exchanges. This signals a shift in market sentiments.
Since then, a reversal in the trend has taken place, with XRP’s exchange outflows facing a sharp reduction. Such trend reversal would suggest the growing confidence of Ripple holders, as they prefer holding their positions to taking their assets off the exchanges.
This may in turn fuels the ongoing price rally as fewer coins are available for exchange, easing supply-side pressure.
Source: Cryptoquant
Consequently, since the massive 24th September outflow surge, XRP has carried away the social media space. Its social volume has been on a gradual increase since then.
Source: Santiment
Long short ratio falls as XRP market sentiment shifts
While XRP is doing great, not everything looks so bright with the market indicators. The long/short ratio has dropped significantly.
This drop in the long/short ratio means fewer traders have taken long positions in XRP, perhaps due to the looming uncertainty over the outcome of the appeal by the SEC.
The mixed signals from the market, whereby the price rally contrasts with more conservative feelings among traders, are very mixed.
With the price rally contrasting against more conservative trader sentiment, mixed signals are being thrown from the market.
Source: Coinglass
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The current rally of XRP was never really expected considering the regulatory uncertainty and technical resistance.
However, market sentiment is divided, with investors being equally cautious. Whether this rally will sustain depends on both the technical aspects and case with SEC in the coming weeks.
