- The token’s price declined by over 3% in the last seven days.
- A few metrics looked bullish, but market indicators suggested otherwise.
As a seasoned crypto investor, I’ve seen my fair share of market fluctuations and bearish trends. The recent decline in XRP‘s price, coupled with the bearish pattern on its chart, has me feeling cautious. The token’s social volume remains high, indicating its popularity, but the negative sentiment and declining long/short ratio suggest that bears are in control. The MVRV ratio also dropped sharply, which is a bearish signal.
Last week, the price of XRP took a downturn, with bears holding the upper hand in the cryptocurrency market. A bearish trend has surfaced on the XRP price graph, indicating potential further declines for the token.
As a researcher studying cryptocurrency markets, I would express this idea as follows: If a bearish breakout occurs for a particular token, there is a strong possibility that its market capitalization will experience a significant decrease in the near term.
XRP bears getting ready
According to data from CoinMarketCap, XRP experienced a drop in price by more than 3% within the past week. As of now, the token is being exchanged at approximately $0.519, and its market capitalization exceeds $28.7 billion, placing it among the top 7 largest cryptocurrencies.
Meanwhile, AMBCrypto’s analysis of the token’s price chart revealed a bearish pennant pattern.
In the middle of April, the token’s price began following a particular trend and has since remained within this pattern. Currently, the token’s price is attempting to break through the lower boundary of this trend.
Should bears maintain their dominance, there’s a strong possibility of a downward breakout occurring imminently. Consequent to this eventuality, investors could observe a decline in the token’s value, potentially reaching a price point of $0.477.
Is a price decline inevitable?
An examination of XRP‘s on-chart metrics by AMBCrypto indicated a potential for price decrease. According to our interpretation of Santiment’s statistics, the token’s social volume was elevated, signifying its considerable appeal within the crypto community.
As an analyst, I observed that the market’s emotional tone continued to lean towards pessimism, with a preponderance of negative sentiments prevailing.
As a crypto investor, I’ve been closely monitoring XRP‘s market trends using Coinglass’ data. Notably, I observed that XRP’s long/short ratio took a dip in the 4-hour timeframe. A decreasing ratio implies a predominance of short positions over long ones. This observation aligns with bearish sentiment and increases my suspicion of an impending price decline for XRP.
Additionally, its MVRV ratio dropped sharply, which can be inferred as a bearish signal.
Despite this, the remaining metrics indicated a bullish outlook for XRP. For instance, there was a significant increase in the amount of XRP being traded on exchanges last week. Additionally, the number of large transactions involving XRP from whale addresses was elevated, implying that these major players were actively engaging in XRP trading.
The number of new addresses increased significantly, indicating a heightened activity in transferring the token due to the token’s robust network expansion.
As a crypto investor, I closely examined the token’s daily chart to determine its price trend. The Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover, signaling a potential sell signal. At present, the Relative Strength Index (RSI) stood at 46.74, implying a bearish outlook.
Realistic or not, here’s XRP’s market cap in BTC’s terms
Additionally, the Money Flow Index (MFI) of the token indicated a decrease and was below the neutral level, implying a strong likelihood of a downward price trend.
The CMF indicator maintained a mostly optimistic outlook since it continued to hover above the zero line.
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2024-06-02 00:07