Despite Market Sell-off, Long-Term Holders Are Accumulating XRP, the Native Token of Ripple Labs

XRP, the native token of Ripple Labs, is gaining massive attention from long-term holders despite a significant sell-off in the cryptocurrency market.

In the midst of a substantial cryptocurrency sell-off, interest in XRP from long-term holders is steadily growing, even as exchange outflows continue and raise concerns about an optimal buying level.

Over the last 48 hours, a significant $55 million portion of XRP tokens has flowed out of exchanges, according to on-chain analytics firm Coinglass. These substantial outflows from exchanges are usually a sign of accumulation and further raise a concern about whether this is an ideal level to buy or not.

At press time, XRP is trading at $2.05 and has seen a price drop of over 5% in the past 24 hours. However, during the same period, its trading volume jumped by 95%, explaining the asset’s outflow from exchanges.

As the asset reached a key level following this massive price decline, it has reached a make-or-break situation for XRP. Observing the asset’s daily chart, it has formed a bearish head and shoulders pattern and is now approaching the neckline.

However, this level is crucial due to its historical price momentum. Annually, whenever XRP reaches this level, it tends to show a price reversal or rebound, which might explain the recent outflows from exchanges.

But if the current market sentiment remains unchanged and the price continues to fall, there is a strong possibility that XRP could drop by 44% to reach the $1.20 level in the future.

Moreover, looking at Coinglass liquidation data, traders are currently bullish on XRP. At press time, the major liquidation levels or over-leveraged positions are at $2.08 on the upper side and $1.93 on the lower side. At these levels, traders have a total of $28 million and $58.70 million in short and long positions, respectively, opened in the past 24 hours.

These levels indicate that bulls are currently dominating the asset and are hoping that XRP’s price will not fall below the $1.93 level in the coming days.