July 21, 2024

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Why did the recent surge in XRP prices fail to break its downtrend?

Why did the recent surge in XRP prices fail to break its downtrend?

  • XRP reported a price surge in the last 24 hours.
  • The downward trend continues even with the current price increase.

ripple [XRP] It saw a rise of 3.24% in the last 24 hours. At the time of writing, the altcoin was trading at $0.49. In the last seven days, it has seen a price increase of 0.04.

In fact, it also registered a 1.1% increase over the past hour. According to Coinmarketcap, the market cap of XRP rose 3.08% to $27.4 billion. However, trading volume fell by 18.6% over the past 24 hours to $813 million.

Source: Trading View

AMBcrypto analysis shows that XRP rose to $0.51 on June 15 from the previous low of $0.46, representing a 9.45% price increase.

The price increase followed a downward correction from the recently recorded price of $0.45. Thus, after the support was able to maintain the downtrend, the price rose over the past 24 hours.

The current increase sets XRP up further if it breaks the resistance level at around $0.53.

Source: Trading View

In fact, the RSI at 45 showed that there were more sales than purchases. This RSI indicates that prices will decline due to selling pressure. In general, higher selling pressure leads to lower prices.

Source: Trading View

Likewise, a negative CMF of -0.05 showed a continuation of the downtrend. In a sense, a CMF below 0 supports a downtrend. Therefore, despite the current rise in prices, the overall market is in a position to decline further.

What do the metrics indicate?

Source: Santiment

Looking further, various indicators support a continuation of the downward trend.

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According to Santiment data, XRP has reported a continued decline in exchange outflows. Lower exchange flow means lower withdrawals of XRP from exchanges to wallets.

When there is high outflow, cryptocurrency prices rise due to scarcity, while low outflow means lower prices.

Source: Santiment

Furthermore, according to Santiment, XRP has recorded a higher number of stablecoins held by whales. At press time, whales with more than $5 million worth of XRP held $27 million, representing 52% of the total supply.

The accumulation of exchanges with a small number of holders increases price volatility, which is seen in a downward trend even with recent price increases.


Realistic or not, here is the market cap of XRP in terms of BTC


What’s next for XRP?

As of the time of writing, XRP has registered a 3% increase over the past 24 hours. However, the price rise seems to coincide with a bearish market trend. Various metrics showed that the downward trend is set to continue.

The exchange flow indicated an ongoing bear market trend. Likewise, a negative CMF indicated further downside, while an RSI of 45 indicated selling pressure that would likely push the market further down.

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