XRP holds on at key support level: Will the altcoin rise or fall?

• XRP’s price continued to hold on to the $0.5557 support.
• The liquidation heatmap indicated that there were consolidations around $0.56–$0.58.

Ripple [XRP] hovered just above a key support level of $0.5664 at press time, according to AMBCrypto’s look at TradingView’s chart.

This was just above the $0.5557 level, which has proven to be a significant support against further downside rallies. Also, XRP has been fluctuating within a narrow range, suggesting a period of consolidation.

As of this writing, the price was building bullish momentum, surging by 2.3% since its rejection from the support level.

Source: TradingView

XRP: Bulls vs. bears

According to AMBCrypto’s analysis of the liquidation heatmap data, concentrations of positions were mostly spotted within the $0.56–0.58 range.

This clustering indicated that investors were positioning themselves cautiously, with a slight bullish bias evident just above the consolidation phase.

Source: Coinglass

Exchange exodus

Interestingly, AMBCrypto’s look at CryptoQuant’s data indicated a rising trend in terms of exchange outflows. There was some significant outflow, especially from the 6th to the 9th of August.

These outflows are often interpreted as accumulation because when tokens are moving off exchanges, it means that people intend to hold them, not sell them.

Source: CryptoQuant

However, the active address data painted a somehow different picture. The number of active XRP accounts have been declining since the 6th of August, indicating that reduced market participation in trading activity might be possible.

Source: CryptoQuant

Read Ripple’s [XRP] Price Prediction 2024-25

Sluggish bullish momentum?

XRP remained above support at press time; exchange outflows signaled the accumulation phase. Declining active addresses and a tight trading range all indicate sluggish bullish momentum. 

All XRP indicators do not write off the likelihood of a potential bullish rally depending on the recent price movements. Meanwhile, the $0.6487 level is on cards.