Despite the bearish market sentiment, XRP, Ripple Labs’ native token, has received widespread attention from crypto enthusiasts as it defies the market trend. On January 9, 2024, while most cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and others experience a price drop, the price of XRP increased by 2%.
XRP technical analysis
The recent price action seems favorable for the altcoin. However, the four-hour chart of XRP indicates that it may not face further price declines in the future due to the presence of the 200 Exponential Moving Average (EMA). This suggests that XRP is unlikely to fall below the USD 2.19 level due to the support of the 200 EMA.
In November 2024, XRP exceeded the 200 EMA for the first time. Since then, the altcoin’s price has reached this level three times, and each time has seen impressive upward momentum. During the recent price crash in the crypto landscape, XRP once again touched the 200 EMA and is now trading above the indicator.
Examining the current situation and historical price action reveals a strong possibility that XRP could rise significantly if it sustains itself above the 200 EMA.
While on the daily time frame, XRP appears to be retesting the breakout level of the bullish flag and pole price action pattern. It could rise significantly if it remains above the USD 2.20 level.
Crucial levels to watch
The $2.20 level is a strong support area where the price asset is supported by the 200 EMA and a horizontal level.
The $2.50 level is a strong resistance zone. If the price exceeds this level, massive upward momentum could follow.
$73 million in XRP outflows from exchanges
Amid this market uncertainty, whales appear to be collecting the tokens, as reported by the on-chain analytics company Mint glass. Spot inflow/outflow data shows that exchanges have witnessed an outflow of a significant $73.14 million of XRP tokens, indicating a bullish signal.
In the cryptocurrency landscape, outflows refer to the flow of assets from exchanges to the wallets of long-term holders, which has the potential to create buying pressure and upside momentum.
Current price momentum
At the time of writing, XRP is trading around $2.32 and has witnessed a price increase of over 1.5% in the last 24 hours. However, during the same period, trader and investor participation skyrocketed, while trading volume increased by 20%.
