XRP Price Prediction: Will the Altcoin Prevail as Bulls Remain Unfazed By the Negative Signs?

In the last 24 hours, XRP price has been swinging sideways around $2.40, indicating almost equal strength between bulls and bears.

XRP price has remained almost stagnant over the last 24 hours. However, traders seem to be expecting the token to climb higher, despite the negative signs.

This sentiment comes amid spot outflows worth millions of dollars. Will the altcoin be able to rally?

XRP traders seem to be expecting the token to climb higher, despite the negative signs. This sentiment comes amid spot outflows worth millions of dollars.

According to Coinglass, the XRP Long/Short ratio has risen above 1. The ratio serves as a measure of traders’ expectations. A reading above 1 indicates more long-positioned traders than shorts.

On the other hand, a reading below 1 showcases the dominance of shorts who are betting on the price to decrease. Hence, the current reading suggests that many traders expect the XRP price to add to its 10% seven-day rally.

Interestingly, this development comes amid a wave of spot outflows. At the time of writing, Coinglass data shows a $40 million outflow from the XRP spot market within the last two days.

Typically, increased spot inflows reflect direct investment in the asset at current market prices, indicating strong bullish sentiment. Such trends often boost demand, potentially applying upward pressure on the altcoin’s price.

However, when the outflow increases, it indicates low demand for the cryptocurrency. If sustained, this could put downward pressure on XRP’s price. But still, as stated above, XRP traders do not expect the altcoin to experience a significant correction.

On the daily chart, XRP’s price has maintained the bull flag formation. The bull flag, resembling a flag on a pole, is a significant pattern in analysis. It appears after a sharp upward price movement and signals the potential for another strong rally.

Typically, this pattern acts as a bullish continuation, anticipating further price increases driven by sustained trading volume. Therefore, if XRP sees an increase in buying pressure and its volume continues to rise, the price might rally to $3.25.

Should the altcoin see an intensified wave of demand, this target could be higher, and XRP’s price might trade above $4. However, a drop below the flag’s lower trendline could invalidate this prediction. If that happens, XRP might sink to $1.40.