The price of Ripple (XRP), which recently surged 350% in 30 days, has now fallen from its peak of $2.80. This drop could be linked to a decrease in XRP outflows from exchanges, as recent data indicates.
If this trend continues, XRP could lose more of its recent gains.
Ripple Investors Are No Longer HODLing in Numbers
On December 4, the outflow of XRP from exchanges was 980.65 million. At the time of writing, it has decreased to 44.17 million, indicating a difference of 936.48 million. This metric tracks the number of tokens withdrawn from exchanges.
When it rises, it means that most holders are not willing to sell. Thus, the price of cryptocurrency may increase. Conversely, a decrease indicates that bullish conviction is no longer as high as it was and could lead to a price decline.
Considering that the current price of XRP is around $2.33, the outflow between yesterday and the time of writing is worth $2 billion. Given the aforementioned conditions, if the outflow continues to fall, the price of XRP could follow suit.
XRP outflow from exchanges. Source: CryptoQuant
Additionally, according to Santiment, XRP’s Weighted Sentiment has seen a significant decline, falling from 6.75 to 0.035. Weighted Sentiment measures market perception, reflecting whether participants are optimistic (bullish) or pessimistic (bearish) about a cryptocurrency.
A rising sentiment indicates optimism and enthusiasm around the token, while a decline points to bearish sentiment, signaling reduced confidence or negativity in the market. If this trend continues, it could decrease demand for XRP, potentially leading to a price drop as market interest wanes.
XRP Weighted Sentiment. Source: Santiment
XRP Price Prediction: Time to Drop Below $2?
On the daily chart, XRP has posted three consecutive red candles, indicating selling pressure on the altcoin. A closer look at the chart shows that the cryptocurrency’s trading volume has decreased.
In short, high volume confirms that there were more sales than purchases. If this continues, the price of XRP could continue to fall. If validated and the outflow of XRP slows down, the price could drop to $1.90.
Ripple Daily Analysis. Source: TradingView
In a highly bearish scenario, the altcoin could drop to $1.46. However, this trend could change if the outflow from exchanges increases again. In this case, the price could rise to $2.90.
The article XRP: Loss of US$ 2 million with a 10% drop was seen for the first time on BeInCrypto Brasil.
