XRP is currently displaying bearish signals as indicated by the Chaikin Money Flow (CMF), which suggests a liquidity exit from the market. In the last seven days, a majority of XRP transactions resulted in a loss, with the daily ratio of XRP transaction volume showing a reading of 0.97.
Ripple’s XRP continues to struggle to break back into the $0.50 zone, currently trading at $0.49. Over the last 24 hours, the altcoin has surged by 0.5% but has declined by 3.8% in the past week.
Technically, the future price movement of XRP is uncertain as it hovers close to its 20-day exponential moving average (EMA), signaling a consolidation phase with a balance between buying and selling. Key momentum indicators are approaching their center lines, with the Relative Strength Index (RSI) currently at 50.13 and the Money Flow Index at 44.44.
Indicators suggest a blurry future for XRP, with the RSI indicating neutrality and the CMF showing a liquidity exit from the altcoin market. This bearish sentiment coincides with Ripple releasing 150 million XRP ($78 million) from its reserves, with a total of 410,239,560 XRP ($213 million) transferred across exchanges in just 24 hours.
The capital exit from XRP can be attributed to most transactions resulting in losses, with a daily ratio of XRP transaction volume in profit to loss at 0.97. Despite negative indicators, open interest in XRP’s futures market has increased by 7% to $661 million since the beginning of the month, suggesting more traders are entering the market and opening new positions.
The XRP funding rate indicates that traders are predominantly opening long positions, anticipating a price increase in the future. This aligns with predictions that XRP may break out of its symmetrical triangle and experience a surge of 41% similar to that seen in 2017.