XRP price might be gearing up for a breakout. The charts are starting to look bullish, especially on the short-term timeframes.
The price of XRP might be gearing up for a breakout, but some traders are getting nervous as on-chain activity continues to fade.
On Monday, April 19, netflow data showed a $3.26 million increase in XRP flowing into exchanges, according to blockchain data. This movement usually reflects traders positioning themselves to sell, signaling bearish sentiment in the spot market.
Executed transactions on the XRP ledger decreased sharply from 1.56 million to 660,000. Active sending addresses also decreased to 8,500 from 20,700 within the same time frame. These declines indicate reduced engagement from both retail and institutional users, raising concerns about the sustainability of the crypto’s momentum.
However, despite the lackluster on-chain metrics, interest in XRP derivatives surged. Open interest on XRP options reached $3.14 billion, while options volume soared by 73.58% in just 24 hours. This surge suggests strong interest in short-term contracts, particularly from speculative traders expecting a breakout.
This divergence between chart-driven optimism and weakening on-chain metrics highlights the uncertainty surrounding XRP’s next move. While bullish traders are keeping a close eye on the neckline of the inverse head and shoulders pattern, low user activity could limit any follow-through unless engagement picks up.
The post Ripple Holders, Beware: Here’s Why the XRP Price Rally Is at Risk appeared first on .
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