- The latest transaction suggested that XRP’s upswing may stop.
However, technical analysis showed that direction is not yet clear.
As a crypto investor with some experience under my belt, I’ve learned to take both short-term price movements and long-term trends into account before making any decisions. Recently, the latest transaction of 30 million XRP tokens moving to Bitstamp raised some concerns for me. Although technical analysis showed that the direction was not yet clear, this event typically signals bearish sentiment in the market.
As a researcher studying blockchain transactions, I came across an intriguing event on June 17th. Whale Alert, a renowned blockchain analytics system, reported that approximately 30 million Ripple tokens had been transferred from an anonymous wallet. Shortly after, on-chain data revealed that these tokens had landed in Bitstamp’s digital ledger.
Bitstamp is among the most experienced cryptocurrency exchanges in the market. However, an increase in the volume of tokens being transferred to exchanges isn’t necessarily a positive sign for token prices. This is due to the fact that many investors prefer keeping their assets outside of these platforms unless they intend to make a sale.
XRP faces a lengthy consolidation period
Based on the latest transaction, it seems that XRP may experience a price drop. Currently, its value is at $0.51.
It’s worth noting that among the top 10 cryptocurrencies tracked by CoinMarketCap, only one experienced a price growth in the last 24 hours. Specifically, its value rose by approximately 3.97% compared to the day before.
But do metrics support the notion that XRP would erase the gains? Let’s check.
Initially, AMBCrypto examined the Network Expansion indicator. This statistical measure calculates the count of fresh addresses engaging with a blockchain. To be more precise, an address is classified as new if it accomplishes its inaugural successful transaction within the system.
As an analyst, I would interpret an uptick in network growth as a sign of growing interest and engagement with the project. On the other hand, a decrease in network growth could indicate a lack of momentum or even a decline in enthusiasm for the project, potentially dampening both adoption and demand for its token.
Currently, the expansion of nodes on the XRP Ledger is shrinking. This diminished interest may put a stop to XRP’s upward trend, potentially leading to a dip beneath $0.50 in value for the token.
Besides the drop in usage, the Realized Capital (Cap) suggested a potential decrease in value. Realized Capital represents the total accumulation of profits from past transactions and losses incurred.
In a bull market, the Realized Capitalization level soars due to rising prices. Yet, a dip in this metric implies a high volume of token transactions.
As a researcher studying the historical trends of this particular movement, I’ve observed that it has been followed by a prolonged phase of consolidation. Following the drop in Realized Cap on the XRP Ledger, there is a possibility that the token may encounter difficulties in sustaining its upward trajectory.
Will the price slide to $0.49?
As a researcher, I would express it this way: The price of XRP could fluctuate in the near term before settling around the range of $0.49 to $0.51 based on current market indicators.
In technical analysis terms, AMBCrypto noted that the long-term Exponential Moving Average (EMA) and short-term EMA intersected. Such alignment suggested potential price stability for the token.
Read Ripple’s [XRP] Price Prediction 2024-2025
Despite the bearish outlook suggesting a potential resistance at $0.53 for XRP, the Accumulation/Distribution (A/D) line’s upward trend implies growing buying pressure. Consequently, there is a possibility that XRP’s price may disregard this bearish prediction and reach the resistance level instead.
If the rate of accumulation decreases, the cryptocurrency may experience a drop towards its support level at $0.49 as the next potential price direction.
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2024-06-18 11:03