- XRP’s Relative Strength Index (RSI) formed a bullish divergence, signaling a bullish trend.
- Following the breakout of the descending trendline there is a high possibility that XRP could soar by 15%.
In this bearish market sentiment, Ripple [XRP] looked bullish as its on-chain metrics indicated that its price was poised to skyrocket.
Since August 2024, XRP, along with other major cryptocurrencies experienced a massive price decline, potentially due to the significant drop in Bitcoin’s [BTC] price.
XRP could rise by 15%
Looking at the XRP’s key on-chain metrics, a recent trendline breakout and bullish divergence on the chart have created a bullish outlook for the token.
However, there is a high possibility that it could soar by 15% in the coming days.
According to AMBCrypto’s analysis, XRP has recently taken support from the crucial level of $0.55 and the 200 Exponential Moving Average (EMA) on a daily time frame.
Since July 2024, XRP has revisited this support level multiple times, and each time it has experienced a price surge of almost 14%.
This time, there is a high possibility that history might repeat itself and XRP could reach the $0.65 level or even more.
Source: TradingView
Meanwhile, on a four-hour time frame, XRP recently gave a breakout of the trendline. Additionally, its Relative Strength Index (RSI) formed a bullish divergence, signaling a bullish trend.
In the recent market downturn, XRP’s price formed a lower low, while its RSI has made higher lows, resulting in this bullish divergence. Traders and investors view this as a potential buy signal.
On-chain metrics
According to the data from the on-chain analytic firm CryptoQuant, XRP’s exchange reserve was at its lowest level, which potentially supported this bullish outlook.
A decline in exchange reserves or a lower level indicated that investors or whales were accumulating tokens from the exchanges, leading to a continuous decrease in reserves.
Source: CryptoQuant
Additionally, CryptoQuant’s XRP exchange inflow was comparatively lower than on other days, indicating a buying opportunity.
Currently, the major liquidation levels are near $0.555 on the lower side and $0.59 on the upper side, as traders are over-leveraged at these levels, according to the CoinGlass data.
If the market sentiment changes and the XRP price rises to the $0.59 level, nearly $6.8 million worth of short positions will be liquidated.
Read Ripple’s [XRP] Price Prediction 2024–2025
Conversely, if the sentiment remains bearish and the price falls to the $0.555 level, approximately $7.6 million worth of long positions will be liquidated.
Source: Coinglass
Thus, bulls were dominating the asset at press time, having the potential to liquidate short positions.