Key Insights:
- XRP price signals short-term bullish strength as price approaches the 200-day exponential moving average.
- This altcoin’s liquidity on Binance retreats to multi-year lows.
- XRP ETFs kick off March with slightly higher allocation.
XRP price has maintained sideways price action and low volatility over the last 4 weeks. The Ripple-native coin has formed robust support near $1.33, but could this same level serve as a launchpad for bullish momentum?
The crypto market is off to some recovery this week, and analysts have their sights set on the XRP price for numerous reasons. First, the latest XRP news revealed that Ripple just launched a stablecoin platform designed to provide end-to-end services that facilitate institutional adoption.
The development may solidify Ripple’s position as a stablecoin services provider. While this may draw attention towards XRP crypto, it has so far not provided significant momentum. However, an XRP price analysis conducted by EGRAG Crypto suggests that the cryptocurrency could be in the early stages of a rally.
The analyst noted that the XRP price could be about to push above its 200-day exponential moving average. EGRAG Crypto believes that XRP price could build bullish momentum if it closes the week above the 200-day MA and above the $1.55 price.
If that outcome plays out, the analyst believes that XRP crypto may catapult to $2.20. On the flip side, the same analyst predicts a potential drop below $1 if the price rejects the $1.55 level.
Where XRP Price May Range According to Polymarket?
The $2.20 price tag could be a point of interest for the analyst, and it would certainly be an interesting outcome for traders. This is because it represents a 56% bounce back from the current price level.
However, Polymarket may not be convinced of that outcome. The predictions market is currently pricing in a 3% probability that XRP price will rally to $2.20 before the end of March.
Interestingly, Polymarket bets indicate a 16% probability that the XRP price will drop to $1. The majority of the bets (48%) predict that the Ripple-native coin will retest the $1.20 price level, while 43% predict that it will surge to $1.60 this month.
In other words, the prediction market suggests that the cryptocurrency could still be stuck within a narrow range for the next 4 weeks.
Key Indicators That Will Signal XRP’s Next Move
XRP crypto’s sideways movement indicates that the sell pressure has cooled off after months of intense bearish activity. However, it also reveals weak demand for the asset.
According to CryptoQuant analyst Arab Chain, XRP’s 30-day liquidity on Binance now sits at levels last seen in late 2021. In other words, trading volumes on the world’s largest crypto exchange have dropped drastically over the last few months.
The declining liquidity index reflects low appeal in the crypto segment as seen across the entire market. However, the same index could also signal XRP’s bullish comeback once it starts demonstrating rising volumes.
Interestingly, large-order book data suggest that some whales may be positioning for an upside move. Whales registered about $2.6 million in net spot buys across Binance, OKX, and Coinbase in the last 4 days.
Whales also registered over $13.4 million in net long positions in the derivatives market during the same period. Things were even more interesting on the XRP ETFs market.
XRP ETFs remained relatively weak, although they were mostly positive since the last week of February. Interestingly, they showed higher allocation over the last 2 days, with total XRP ETF inflows exceeding $10.5 million.
The higher XRP ETF inflows on Monday and Tuesday may indicate that whales are scooping up more XRP while it’s still cheap. If the trend continues, it could provide a solid base for a sizable XRP price bounce.