Following a continuous price drop, XRP is on the verge of breaking out from its prolonged consolidation phase due to a market reversal.
XRP Price Momentum
With the shift in market sentiment, XRP's price has soared by 2.50% in the past 24 hours and is currently trading near the $2.51 level. This price surge has pushed the asset close to the upper boundary of its consolidation zone at $2.54.
Key Levels and Risks for XRP
Looking at the bullish outlook, intraday traders holding long positions are strongly dominating XRP, having maintained significant open positions over the past 24 hours. Data shows that traders with long positions are over-leveraged at $2.386, where they have built $65 million worth of long positions. Meanwhile, $2.533 is another key level where traders with short positions are over-leveraged, currently holding $20 million worth of short positions.
Breakout Possibility and Forecasts
Looking at the current XRP price in relation to the liquidation level, it appears that $20 million worth of over-leveraged positions is at risk of liquidation as the price is near the $2.533 level. If this level gets liquidated, there is a strong possibility that XRP could easily reach its predicted level due to minor bets by short traders.
XRP might overcome its prolonged resistance due to a shift in market sentiments and reach the $3.32 level if the current momentum persists.
