XRP Price Prediction: Ripple Labs' Native Token Could Soar 40% to Reach $2.95

input: XRP, Ripple Labs’ native token, is in a crucial make-or-break situation due to bearish market sentiment and a recent price decline. Data from CoinMarketCap shows that XRP has lost over 6% of its value in the past 24 hours and is currently at a critical support level of $1.95.

"The price of XRP, Ripple Labs’ native token, is in a crucial make-or-break situation as bearish market sentiment continues in the market.

Recently, the cryptocurrency has seen a decline in price, losing over 6% of its value in the past 24 hours and now appears to be resting at a critical support level of $1.95, according to data from CoinMarketCap.

However, technical analysis on the XRP daily chart shows that the asset could be recovering from recent lows and now appears to be rebounding.

According to the chart, while the asset’s price is making a lower low, XRP’s Relative Strength Index (RSI) has formed a higher high, suggesting that the asset is poised for a price recovery and an upside rally.

Also, if the asset’s price manages to sustain above the $1.95 level, then there is a strong possibility that the token could view a 40% to surge in the coming days and reach $2.95, considering the recent price action and historical momentum.

Despite the token observing a notable price in recent days, it’s still trading above the 200 Exponential Moving Average (EMA), which indicates that the asset is in an uptrend.

As the price continues to fluctuate, on-chain analytics firm, ChainGlass reports that whales and long-term holders have been accumulating tokens.

Moreover, considering the chart, if the asset’s price breaks down below the $1.95 level, then the next immediate support level for the token is at $1.76, which is the 50% Fibonacci retracement level.

On the other hand, if the bulls push the asset’s price and manage to break above the 38.2% Fibonacci retracement level, then the next immediate resistance level for the token is at $2.13.

Recently, there has been a massive outflow of XRP tokens from exchanges. According to the data from spot inflow/outflow, in the past 24 hours, around $110 million worth of XRP tokens have been seen flowing out of exchanges, which could be indicating some accumulation by whales or large institutional investors.

This outflow could create buying pressure and fuel a further upside rally, which we have seen recently.

Furthermore, considering the on-chain data, the total value locked in DeFi protocols has decreased by 0.34% in the past hour and the cryptocurrency market cap has also seen a decrease of 0.18% in the past hour.

According to the data from Coinglass, intraday traders are currently over-leveraged at the $2.08 level, where traders betting on the long side have built $10.30 million worth of long positions.

On the other hand, at the $2.136 level, traders betting on the short side have built $19 million worth of short positions. This data shows that traders are following the current market sentiment and believe that the price won’t rally above the $2.136 level.