Key Takeaways
Whales moved XRP worth $108M to Coinbase as Exchange Reserves rose. Despite falling volumes though, the bullish chart patterns could target the $3.80 price level.
XRP’s rally over the past week has been impressive, with the altcoin climbing by 20% on the price charts. However, XRP bulls may be losing steam now, sparking debate over whether a cooldown is next or not.
XRP bulls’ activity raises sell-off fears
In fact, fresh on-chain data has raised some very important questions about the rally’s staying power. For example – Whale Alert flagged two large transactions in the last 24 hours alone.
These transactions totalled 33.396 million XRP tokens worth $108 million, all of which was transferred to Coinbase.
Source: X (Formerly Twitter)
That’s not all though as according to CryptoQuant, Exchange Reserves climbed as more XRP hit centralized platforms.
Source: CryptoQuant
Naturally, such inflows often mean that long-term holders are taking profit, bolstering the short-term bearish case for the altcoin.
XRP bulls in the game?
At the time of writing, XRP was trading at $3.25, up 2.5% over the last 24 hours. This, despite the trading volume falling by 15% from its previous session. Such a dip in participation could mean that some traders are stepping back as the price nears its all-time high.
Consider this – AMBCrypto’s technical analysis showed XRP breaking above a descending trendline on the daily chart, then clearing a bullish flag on the 4-hour timeframe. At the time of writing, it appeared to be shaping an inverted head-and-shoulders pattern that is yet to be confirmed.
Source: TradingView
Following the latest breakout from the flag and pole pattern, the altcoin may be poised for a 15% price uptick to hit a new high of $3.80. Such a bullish outlook may be further strengthened by the engulfing candle XRP formed over the past week.
Besides the price action, the Bollinger Bands highlighted strong bullish momentum across the board. However, with the price hovering near the upper band, there may be a minor pullback before another leg higher.
Finally, the Relative Strength Index’s (RSI) reading of 59 implied that XRP bulls might still have some room to push.
Liquidation clusters point to key battlegrounds
At the time of writing, the major liquidation levels were $3.134 on the lower side and $3.334 on the upper side.
Source: CoinGlass
Around these zones, traders built $170.01 million in longs versus $24.85 million in shorts. This could be a sign that XRP bulls are dominating positions and might extend their price rally.
