Ripple’s XRP surged to a three-year high of $1.26 on Nov. 16 but has since fallen back to $1.15, down 9% over the past two days.
The market is currently experiencing increasing selling pressure, with concerns growing that the XRP token may soon fall below the critical $1 threshold.
Ripple’s sales activity surges
The divergence between price and volume in the past 24 hours is a clear indicator of a surge in selling pressure. During this period, the altcoin’s value has risen by 7%, while its trading volume has plummeted by 55%.
When an asset price rises while trading volume decreases, this indicates that market participation is declining. When trading volume increases, price increases are more sustainable, which indicates increased market interest.
However, when prices rise while volume decreases, the upward momentum is losing strength. This indicates a reduction in the participants driving the price movement, which may decrease its reliability or make it more susceptible to reversals.
XRP Price and Trading Volume.
Additionally, the relative strength index (RSI) heatmap indicates that four out of six time frames are in overbought conditions, suggesting that prices will continue to pull back during this period.
RSI measures the overbought and oversold market conditions of an asset. Its range is between 0 and 100, with values above 70 indicating the asset is overbought and likely to decline. Conversely, an RSI value below 30 indicates the asset is oversold and may rebound.
The overbought conditions of XRP across multiple time frames indicate a clear conclusion: the market is overheated. Signs of weak buying are emerging, which increases the likelihood of a continued decline in XRP cryptocurrency prices.
XRP Price Prediction: Price is about to drop below $1.
Currently, the trading price is $1.15, with support at $1.06. If selling pressure intensifies, this altcoin may test this support level. A break below this support could lead to prices falling below the psychological barrier of $1, potentially dropping to $0.93. Continued selling could push XRP even lower, with a target of $0.82.
XRP Price Analysis.
However, a recovery in demand could push XRP back above the three-year high of $1.26, thus invalidating the bearish outlook mentioned above.
