Recent data shows that the bullish momentum that the altcoin had has temporarily stalled. If maintained, this could cause XRP's rally to be stalled for a while.
Ripple sees increasing sell pressure, low demand
According to CryptoQuant, the XRP Taker buy/sell ratio has decreased to 0.93. This ratio helps determine whether bullish sentiment is dominating the derivatives market or bearish sentiment is being controlled.
Typically, a ratio under 1 indicates that buyers are leading, suggesting a more optimistic outlook. However, that is not the case in this article, as sellers of XRP seem to have the upper hand. This current situation may be linked to profit-taking among traders who have opened long positions.
In most cases, when traders withdraw their profits, it puts downward pressure. Therefore, it is no surprise that the price of XRP has dropped to $1.42 at the time of press.
XRP Taker buy/sell ratio. Source: CryptoQuant
Additionally, the Network Growth index continues to show that sellers of XRP are in control. Network Growth tracks the number of new addresses that have successfully completed their first transaction on the blockchain, providing insights into token adoption and market traction.
As network growth increases, new market participants buy into the token. However, this is not the case for XRP. According to Santiment, network growth on the XRP Ledger has significantly decreased. If this trend continues, it could indicate ongoing selling pressure, potentially leading to further price declines for XRP.
XRP Network Growth. Source: Santiment
XRP price prediction: Time to go lower
After recent developments, the Moving Average Convergence Divergence (MACD) on the daily chart has dropped into the negative territory. MACD is a technical oscillator that measures momentum by using the difference between the 12 and 26 period Exponential Moving Averages (EMA).
XRP 4-hour analysis. Source: TradingView
If this continues as predicted, the price of the altcoin may drop to $0.92. On the other hand, if buyers start to take control and MACD begins to trend upward, this could change. In that scenario, the price of XRP could rise to $1.63.