There is a decreased demand for XRP
Crypto investors are watching Ripple (XRP) as technical indications indicate a bearish outlook. After four days below its 20-day exponential moving average (EMA), XRP has entered a bearish zone, according to experts.
With XRP's 20-day average price serving as resistance, this technical signal implies a market attitude change. Analysts worry about demand falling since the price is below this threshold.
According to Coingecko, XRP was trading at $0.52, down 0.3% and 3.1% in the previous 24 hours and 7 days.
XRP is losing steam.
XRP's momentum indicators, which show price strength and direction, feed the negative fire. Both the RSI and MFI are below their neutral values. This shows that investors may be selling XRP rather than purchasing more.
Active on-chain XRP addresses have dropped significantly, depressing the mood. Over the last month, Santiment statistics shows a 30% drop in XRP daily active addresses. This downturn in network activity and user engagement generally precedes a price drop.
Profit in Bad Times?
XRP bulls have some optimism. An intriguing statistic shows that everyday traders still benefit. XRP's daily transaction volume demonstrates that 1.16 transactions earn for every loss. This shows that talented investors might capitalize on market volatility to find short-term trading opportunities despite gloomy sentiment.
XRP's negative MVRV ratio may also attract investors. This measure compares the current market price of XRP to the average price at which all tokens were purchased.
Investors seeking assets below their historical price points may find XRP cheap with a negative MVRV ratio.
