Worrying Signs For XRP: Price Tumbles As Demand Dries Up
June 01 2024 - 5:30PM
NEWSBTC
Crypto investors are keeping a close eye on Ripple (XRP) as
technical indicators paint a concerning picture for the altcoin’s
price. After closing below its 20-day exponential moving average
(EMA) for four consecutive days, XRP has entered what many analysts
interpret as a bearish zone. Related Reading: MATIC Under The Lens:
Why Is Polygon Busy But Not Making Money? This technical indicator
suggests a potential shift in market sentiment, with the average
price of XRP over the past 20 days acting as a resistance level.
With the current price trading below this key benchmark, analysts
fear a decline in demand could be imminent. At the time of writing,
XRP was trading at $0.52, down 0.3% and 3.1% in the last 24 hours
and seven days, respectively, data from Coingecko shows. Demand For
XRP Loses Steam Adding fuel to the bearish fire are XRP’s momentum
indicators, which provide insights into the strength and direction
of price movements. Both the Relative Strength Index (RSI) and
Money Flow Index (MFI) are currently positioned below their neutral
points. This suggests that buying pressure behind XRP is waning,
with investors potentially looking to offload their holdings rather
than accumulate more. Further dampening the mood is a significant
drop in XRP’s active on-chain addresses. According to data from
Santiment, the number of daily active addresses on the XRP network
has cratered by 30% over the past month. This decline is often seen
as a precursor to a price slump, as it indicates a decrease in
overall network activity and user engagement. Profit Amidst The
Gloom? However, there are some glimmers of hope for XRP bulls. An
interesting data point reveals that daily traders are still
managing to turn a profit. An analysis of XRP’s daily transaction
volume in profit compared to loss shows that for every transaction
ending in a loss, 1.16 transactions yield profits. This suggests
that despite the overall bearish sentiment, short-term trading
opportunities might exist for skilled investors who can capitalize
on market volatility. MVRV Ratio Offers A Different Perspective
Another factor that could entice some investors is the negative
Market Value to Realised Value (MVRV) ratio for XRP. This metric
essentially compares the current market price of XRP with the
average price at which all XRP tokens were acquired. A negative
MVRV ratio suggests that XRP is currently undervalued, potentially
presenting a buying opportunity for investors seeking assets
trading below their historical price points. Related Reading:
Ethereum Bloodbath: Over $55 Million In Longs Liquidated As Price
Plummets XRP Price Forecast Meanwhile, the current XRP price
prediction indicates a 20% rise to $0.626627 by July 1, 2024,
despite a bearish market sentiment reflected by technical
indicators. The Fear & Greed Index at 72 shows high investor
greed, suggesting strong buying behavior but also a risk of
overbought conditions and potential price corrections if sentiment
shifts. Over the last 30 days, XRP has had almost an equal number
of days with price increases (47%). This shows a balance between
buying and selling pressures. The price has fluctuated by 2%,
indicating mostly stable but noticeable changes. This balance
suggests the market is steady, contributing to the current bearish
outlook despite a positive long-term price prediction. Featured
image from Verywell Mind, chart from TradingView
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