Ripple (XRP) sellers appear to have outperformed the pressure previously put on by bulls, BeInCrypto notes. Over the past 30 days, XRP has surged 177%, driven by a number of factors, putting bears on the back foot.
The data shows that the altcoin’s bullish momentum has come to a temporary halt. If this continues, it could put a pause on XRP’s rally for some time.
Ripple sees increased selling pressure and decreased demand
According to data from CryptoQuant, the buy/sell ratio for XRP has dropped to 0.93. This ratio helps determine whether bullish sentiment is dominating the derivatives market or if bearish sentiment is dominant.
Typically, a ratio below 1 indicates that buyers are in the lead, indicating a more bullish outlook. However, this is not the case at the time of writing, as sellers appear to have the upper hand. This current situation can be linked to profit-taking among traders who have long positions open.
In most cases, when traders take their profits, it puts downward pressure on the price. Therefore, it is not surprising that the price of XRP has dropped to $1.42 at the time of publication.
Additionally, the network growth metric indicates that XRP sellers are dominant. Network growth tracks the number of new addresses that make their first successful transaction on the blockchain, providing insight into the token’s adoption and market appeal.
When network growth increases, new market participants buy the token. However, this is not the case for XRP. According to Santiment, network growth on the XRP ledger has dropped significantly.
If this trend continues, it could indicate continued selling pressure, which could lead to further declines in the price of XRP.
XRP Price Prediction: Time to Go Lower
Following the recent development, the MACD indicator on the daily chart has fallen into negative territory. The MACD indicator, which measures momentum using the difference between the 12- and 26-period exponential moving averages, has fallen into negative territory.
When the reading is negative, it means the momentum is bearish. But when it is positive, the momentum is bullish. Therefore, the reading on the chart below indicates that XRP sellers are in control.
If this situation continues, the altcoin price may drop to $0.92 On the other hand, if buyers start to take control, this may change. In this scenario, the XRP price may rise to $1.63.