Ripple Price Analysis: XRP is ready to break out amid massive exchange outlfows
|- XRP/USD is hovering around the critical resistance level.
- The on-chain data suggests that traders are less inclined to sell.
Ripple's XRP is changing hands at at$0.256, mostly unchanged on a day-to-day basis. The coin has gained over 5% in the last seven days amid the recovery on the cryptocurrency market.
XRP is currently the fourth largest digital asset, with a current market value of $11.58 billion and an average daily trading value of $1.7 billion.
Someone is taking XRPs from the exchanges
The exchange flow data revealed a massive outflow of XRP from the trading platform, which is typically a good sign for the coin. It means that traders are not inclined to sell their coins and move to an accumulation phase.
Ripple's exchange outflow
Source: Santiment
Also, according to XRP scan data, someone continues moving XRP from the cryptocurrency exchange accounts. Thus, over 15 million XRP worth over $3.7 million has been transferred from Binance to the institutional custodian BitGo. This transaction followed a series of large XRP movements between the internal digital wallets of the exchange.
XRP transaction data
Source: XRPScan
XRP/USD: The technical picture
XRP.USD topped at $0.264 on October 22 and moved back inside the consolidation range with the upper boundary at $0.258. A sustainable move above this area is needed for the upside to gain traction. Once it happens, the bullish momentum will start snowballing and take the price to the next resistance of $0.278, followed by the pivotal long-term resistance of $0.31.
XRP/USD 12-hour chart
On the other hand, a failure to break above the said resistance of $0.258 will increase the bearish correction risks to the lower line of the recent consolidation channel $0.24. Once it is out of the way, the sell-off will likely gain traction with the next focus on $0.227.
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