XRP Traders Double Down on Bullish Bets Despite $40 Million Spot Outflow

In the last 24 hours, XRP price has been swinging sideways around $2.40, indicating almost equal strength between bulls and bears. However, XRP traders seem to believe that the token is likely to climb higher.

This sentiment comes amid spot outflows worth millions of dollars. Will the altcoin prevail?

XRP Bulls Remain Unfazed By the Negative Signs

According to Coinglass, the XRP Long/Short ratio has risen above 1. The ratio measures traders’ expectations. When the rating is above 1, it means that there are more long-positioned traders than shorts.

On the other hand, a reading below 1 indicates the dominance of shorts, who are betting on the price to decrease. Therefore, the current ratio tilts toward bullish dominance, suggesting 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. As of this 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.

XRP Price Prediction: Chart Stays Bullish

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.