Assessing Bitcoin’s current market dynamics – Low Inflows, high leverage, and…
- XRP liquidations at $2.2 highlighted a profit-taking phase as bullish momentum built on the charts
- A breakout past $3.3 could push XRP towards its 2017 highs, with key metrics supporting this rally
The crypto market has taken interest in the price action of XRP, particularly following its recent slight pullback to $2.2. During this phase, CryptoQuant reported that over $4 million worth of XRP short positions were liquidated.
Source: CryptoQuant
Despite this correction, however, XRP quickly resumed its upward trajectory. According to CryptoQuant’s reports, the declining exchange outflows following the profit-taking session hinted at a temporary pause in accumulation.
However, at the time of writing, the market appeared to be gearing up for the next move, with XRP’s Open Interest (OI) hitting its highest levels recently.
Source: CryptoQuant
Consolidation and breakout on weekly charts
On the weekly chart, XRP’s price seemed to be consolidating within a symmetrical triangle pattern, before breaking out in late November. This breakout led to a staggering 300% surge.
Source: TradingView
Although impressive, this surge is still far from the 1000% rally witnessed during the 2021 bull run.
If XRP replicates its previous bullish momentum, the $7.7-level could be within reach. However, traders are closely watching the $3.3 resistance – A significant hurdle that could define the next leg of this rally.
Signs of strength on daily chart
The daily chart painted an optimistic picture. After the recent retracement to $2.2, XRP quickly regained its bullish momentum. This price rebound alluded to strong buyer interest, even during periods of consolidation on the price charts.
Source: TradingView
Metrics such as rising OI and reduced exchange outflows lend weight to the possibility of further gains. These indicators, together, suggested that traders may be positioning themselves for a potential breakout.
Can XRP rally beyond $3.3?
Breaking past the $3.3 resistance is crucial for the coin to sustain its bullish trajectory. If successful, the altcoin could target higher levels, potentially reaching $7.7 if market conditions resemble 2021’s rally.
Read Ripple’s [XRP] Price Prediction 2024–2025
At the time of writing, XRP’s price action and on-chain metrics offered some promising signals. Maintaining this momentum will depend on breaking key resistance levels and sustained market support.
