XRP Price News: XRP Could Still Rise by 13% After Breaking Out of Consolidation

XRP (XRP) has gone up by 4% in the past week, rising past the $1.50 level at some point as market sentiment shifted.

The Fear and Greed Index dramatically improved in the past month, recovering from a record low of 5 to hit a recent high of 46. This marks a significant shift in investors’ sentiment toward cryptos and could set the stage for the continuation of the latest rally.

Exchange-traded funds (ETFs) linked to XRP bled $57 million from March 5 to March 16. However, after 8 consecutive days of zero or negative net inflows, the trend reversed as investors poured $4.6 million into these vehicles yesterday.

Exchange Inflows Hit Key Level – Spike in Volatility Expected

Interestingly, exchange inflows have dropped significantly in the past few days to levels that have previously preceded strong spikes in volatility for XRP.

This metric tracks the amount of tokens sent to both centralized and decentralized exchanges like Binance. When the metric rises, it typically means that the selling pressure will increase in the near term.

The opposite occurs when it drops sharply, as it means that investors are keeping their tokens in cold storage, which reduces the selling pressure.

Data from Santiment shows that XRP’s net inflows to exchanges dropped to 6.75 million yesterday. The last four times this metric has hit these levels, we have seen pronounced movements next.

A volatile movement at this point will likely favor bulls, as this is the dominant trend.

XRP Needs to Stay Above $1.43 to Keep Rallying

In a recent XRP price prediction, we outlined a trading opportunity with an ideal entry at $1.35 and a target set at $1.48. This specific setup offered a 3.5x risk-reward ratio.

However, XRP kept climbing until hitting $1.60, at which point the selling pressure accelerated. As a result, this altcoin has experienced a strong drop to $1.45 again.

The latest breakout pushed XRP out of its consolidation pattern. This was an early buy signal. However, the price has now been swept back into this range between $1.33 and $1.48, which casts doubt on the sustainability of the rally.

This pullback was somehow expected as the Relative Strength Index (RSI) climbed to overbought territory. Now, the oscillator is standing below 50, meaning that bearish momentum is accelerating.

The $1.43 level seems to be the key support to watch. If this line is broken, the odds of a retest of the $1.33 area will increase dramatically, meaning a 9% downside risk based on where XRP is trading now.

This Needs to Happen for XRP to Get to $1.65

We got an eye-popping total of 7 consecutive buy signals in the hourly chart, meaning that buying pressure from institutions and whales was quite strong since March 9.

Now, we got a sell signal after XRP broke below $1.48. This is interesting because it might be the result of some necessary profit-taking after such a big rally.

Hence, what we would like to see now is XRP bouncing off the $1.43 area, which is kind of what’s happening during the American session today. If we get a buy signal here, the stage could be set for the continuation of XRP’s latest rally toward $1.65.