The surge of XRP over the past week has been impressive, with its price chart rising by 20%. However, XRP bulls may now be losing momentum, raising questions about whether it will enter the next cooling period.
XRP bull activity raises concerns about sell-offs.
In fact, the latest on-chain data raises significant questions about whether this bullish trend can be sustained. For instance, Whale Alert marked two large transactions in just the past 24 hours.
These transactions totaled 33.396 million XRP tokens, worth $108 million, all transferred to Coinbase.
But that's not all; according to CryptoQuant data, as more XRP enters centralized platforms, the exchange reserves are also increasing.
Of course, this influx of funds usually indicates that long-term holders are taking profits, which strengthens the short-term bearish case for the altcoin.
Are XRP bulls in the game?
As of the time of writing, XRP is trading at $3.25, having increased by 2.5% in the past 24 hours. Although trading volume has decreased by 15% from the previous trading day, it still maintains an upward momentum. The decline in participation may indicate that some traders are exiting as the price approaches historical highs.
Consider this - AMBCrypto's technical analysis shows that XRP has broken through a descending trend line on the daily chart and has cleared a bullish flag pattern on the 4-hour timeframe. At the time of writing, it appears to be forming an inverted head and shoulders pattern, but this has not yet been confirmed.
Following the recent breakout of the flagpole pattern, the price of this altcoin may rise by 15%, reaching a new high of $3.80. The XRP engulfing candlestick pattern formed over the past week may further reinforce this bullish outlook.
In addition to price movements, the Bollinger Bands also highlight strong bullish momentum. However, since the price is hovering near the upper band, a slight pullback may occur before another rise.
Lastly, the Relative Strength Index (RSI) reading is 59, suggesting that XRP bulls may still have some room for upward movement.
The clearing cluster points to a key battleground.
At the time of writing, the main clearing levels are $3.134 for the lower limit and $3.334 for the upper limit.
Around these areas, traders have built long positions worth $170.01 million and short positions worth $24.85 million. This may indicate that XRP bulls are in a dominant position and may continue their price upward momentum.
