Is an XRP Rally on the Horizon? Traders Grow Aggressive as Bears Lose Ground

On-chain data indicates that XRP's crucial support level is at $1.75, where investors hold 1.80 billion XRP.
A bullish Morning Star candlestick pattern forming at this support combined with a rebound from $1.85 hints that the ongoing downtrend may be concluding.
With an increase of 4.55% today, XRP, the fourth-largest cryptocurrency by market cap, seems to be shifting away from its bearish trend, establishing a bullish setup at the $1.85 support, known for its price reversals.
Despite this positive move, XRP had experienced a significant drop of over 29% due to the recent market downturn.
Current trading conditions hint at a brighter outlook for XRP, with sentiments from traders, investors, and price charts showing optimism.
As of the latest update, XRP is trading at $2.03, reflecting a daily increase of 6.50%.
However, caution remains among market participants, as trading volume has decreased by 52% to $3.65 billion, according to CoinMarketCap.

Key Takeaways

On-chain data indicates that XRP's crucial support level is at $1.75, where investors hold 1.80 billion XRP.
A bullish Morning Star candlestick pattern forming at this support combined with a rebound from $1.85 hints that the ongoing downtrend may be concluding.
With an increase of 4.55% today, XRP, the fourth-largest cryptocurrency by market cap, seems to be shifting away from its bearish trend, establishing a bullish setup at the $1.85 support, known for its price reversals.
Despite this positive move, XRP had experienced a significant drop of over 29% due to the recent market downturn.
Current trading conditions hint at a brighter outlook for XRP, with sentiments from traders, investors, and price charts showing optimism.
As of the latest update, XRP is trading at $2.03, reflecting a daily increase of 6.50%.
However, caution remains among market participants, as trading volume has decreased by 52% to $3.65 billion, according to CoinMarketCap.

XRP rally loading? Traders turn aggressive as bears lose control

Technical Analysis of XRP and Key Levels to Monitor

AMBCrypto’s technical review indicates that XRP remains in a downtrend since its price is trading below the 200-day Exponential Moving Average (EMA), which typically signifies whether an asset is trending upwards or downwards. Nevertheless, today's price uptick suggests that XRP may be taking steps to exit its long-lasting bearish trend.

On the daily chart, XRP has formed a bullish Morning Star candlestick pattern after testing the essential support level of $1.85.

XRP technical outlook Source: TradingView

Should bullish trends prevail above this critical support level, XRP could be poised for a reversal. Market analysts observed that traders previously accumulated 1.80 billion XRP at $1.75, reinforcing its importance as a support level. Additionally, with the rising price, XRP's Average Directional Index (ADX) has exceeded 34.08, surpassing the critical threshold of 25, which indicates vigorous directional momentum. However, the Chaikin Money Flow (CMF) is still negative at -0.07, indicating ongoing selling pressure and insufficient capital inflow despite the price recovery.

Growing Optimism Among Investors and Traders

Alongside the accumulation at the $1.75 level, on-chain analytics provider CryptoQuant has reported a decrease of 3 million XRP tokens in Binance reserves today.

XRP Ledger: Exchange Reserve Source: CryptoQuant

A reduction in exchange reserves typically signifies that market participants are moving assets from exchanges to private wallets, indicating accumulation. At the same time, intraday traders are reportedly aligning their strategies with whale activities, as there is an increase in long position bets on derivatives platforms like CoinGlass.

Current data show that XRP’s major liquidation levels are positioned at $2.006 on the low end and $2.072 on the high end.

XRP Exchange Liquidation Map Source: CoinGlass

These levels are acting as significant support and resistance areas, with traders in these zones having established $22.55 million in over-leveraged long positions and $10.39 million in over-leveraged short positions.