XRP Price Could Break Negative Trend and Drop Below $0.47
Despite facing strong selling pressure, optimistic indicators suggest that investor confidence remains intact.
XRP had a positive week, with its price experiencing a 2% increase. However, a bearish pattern has emerged on the token’s chart, leading to a decrease in volatility. This recent slow-moving price action could be a precursor to a downward movement in price.
CoinMarketCap data shows that the momentum of XRP has slightly decreased, with the price experiencing minimal changes in the past 24 hours. As of now, XRP is the seventh-largest cryptocurrency, with a market capitalization of approximately $29.3 billion.
Over the past 24 hours, the current price of XRP has slightly decreased to $0.5227, but it has seen a 2.2% increase over the previous week.
In mid-April, when XRP experienced a significant price decline, a bearish pennant pattern formed. Since then, the token’s price has been consolidating within this pattern. If XRP tests this pattern, it could quickly lead to a negative price movement, breaking below the lower trendline and pushing the price even lower.
According to Santiment’s data, the inflow of XRP into exchanges spiked multiple times last week, indicating strong selling pressure and investor dumping of the asset. Additionally, XRP’s NVT ratio saw a significant increase on May 24, suggesting that the coin may be overpriced. Typically, an overvalued asset indicates a potential price decline. The MVRV ratio has also recently fallen, further adding to the pessimistic outlook.
Despite these discouraging signs, there are some promising measures. The weighted sentiment of XRP has risen, indicating that investors are still optimistic and the market sentiment remains bullish. Coinglass data shows that the long/short ratio of XRP has increased in the past 12 hours, which is a positive sign and suggests that investors are more inclined to buy the asset.
To determine if XRP is likely to turn bearish, let’s analyze its daily chart. Following a decline, the Chaikin Money Flow (CMF) has increased, while the Money Flow Index (MFI) is trending upwards, indicating that prices may rise.
If these signals prove to be reliable, XRP may continue its bullish trend and avoid testing the bearish pennant formation. In such a scenario, the price of XRP could initially reach $0.544. However, if XRP tests the bearish trend, it may drop to $0.47 in the coming days.
On the other hand, Ripple Whale has transferred 50 million XRP to centralized exchanges following the approval of the FIT21 bill, as previously reported by CNF.
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