Falling XRP traffic on the network and continuing sales by big investors known as ‘whales’ indicate investors’ confidence is dwindling.
Patterns visible by technical analysis imply a decline to 31%, paralleling other crypto market shortcomings.
Bears may take the XRP price back to the $1 mark due to pressure from profit takings at various industry signals.
Among all the eminently observable signs, the most peculiar is a significant decrease in the overall traffic through the XRP network. The number of everyday addresses interacting with the token is much lower, suggesting that investors are gradually losing interest in it. The decline stated here could reduce the support levels and clear the way for some deep cuts.
Reduce Holdings in Whales
Data shows that big whales controlling significant amounts of XRP have been selling their coins consistently during the last month. This behavior is alarming because similar trends were seen before other sell-offs, especially when retailers also decreased their participation.
Declining XRP Network Activity
Evaluating its current network activity is equally revealing, especially compared to its historical levels: XRP’s network activity has fallen sharply lately. The trend of daily address activity has reduced, which reveals a decline of interest from the investors in the token. This fall could erode the support stands and create a risky turn for sharp decline.
Source:Santiment
MVRV Ratio Suggests Profit-Taking Pressure
The 365-day MVRV shows that a great deal of profit is locked in by XRP holders, and has not yet been realized. In the past, such conditions tend to precipitate sell-offs as investors seek to crystallize their gains. If so, erosive price pressure from below could further build, and XRP could be near the $1 (Accessory Equipment – Repairs and Installation).
Descending Triangle Signals a 31% Drop
According to the technical analysis, the prospects for Ripple’s cryptocurrency are more of a bear direction. This token is within a descending triangle pattern which has been a bearish pattern for most tokens in the past implying that there could be a breakdown soon. If this pattern is to repeat, analysts expect a 31% drop, putting XRP in the untenable territory of a price near $1.
https://twitter.com/Xaif_03/status/1871122276294459862
These combined factors make it look like the ‘short-term’ outlook for XRP will be difficult at best. Many investors are waiting for some stabilization signals which despite the current tendencies might be necessary.
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