Investimento em XRP da Jupiter

Since the start of the month, the price of Ripple (XRP) has fallen by almost 18%, falling from $0.64 to $0.53. While investors may be hoping for a recovery, market sentiment remains fragile, signaling that a recovery may not be imminent.

Instead, on-chain analysis reveals that XRP price may continue to face further declines. Here are the reasons why.

Ripple Holders Count Their Losses

According to CryptoQuant, there are risks of XRP falling below its current price due to an increase in inflows to exchanges. On October 9, data from the analytics platform revealed that the number of tokens sent to exchanges reached 32.36 million.

Exchange inflows track the number of tokens sent from external wallets to centralized platforms. In most cases, sending tokens to exchanges implies that investors are not willing to HODL.

Should the inflow to exchanges slow down, this would be a positive sign that could precede a price rally. Therefore, the token inflow suggests that a significant sell-off could be imminent, putting downward pressure on the price of XRP.

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Pressão de venda do preço do XRPXRP Exchange Inflow. Source: CryptoQuant

Realized Cap is another metric that reinforces this foundation. This metric measures the value of a cryptocurrency by assessing how long it has been moving or remaining stationary.

An increase in Realized Cap usually indicates that coins were sold at higher prices than they were purchased. However, in the case of XRP, the Realized Cap is decreasing. This decline suggests that investors who bought XRP at higher prices are now exiting their positions at a loss.

Therefore, potential investors who are willing to buy may be discouraged, possibly leading to a lower repricing for the cryptocurrency.

Diminuição do Cap Realizado do XRPXRP Realized Cap. Source: Santiment

XRP Price Prediction: Token Targets $0.45

An examination of the daily chart shows that the XRP price is close to the critical support threshold at $0.52. However, the token remains below the 20-day Exponential Moving Average (EMA). The 20-day EMA (blue) is a technical indicator that measures the short-term trend of a cryptocurrency.

Therefore, when the price is above this indicator, the trend is positive. However, since XRP is below it, the token’s value may continue to trend downward. Furthermore, the Moving Average Convergence Divergence (MACD) is negative.

MACD is a technical oscillator that is primarily used to determine momentum. When the reading is positive, the momentum is positive. But since it is negative for XRP, the momentum around the cryptocurrency is negative.

Read more: Ripple (XRP) Price Prediction 2021/2025

Análise de preço do XRPXRP daily price analysis. Source: TradingView

XRP price is likely to fall below $0.49 and could decline by 15% to reach $0.45. Meanwhile, the token could recover if the bulls prevent it from falling below the $0.52 support.

Another factor that could influence the recovery is the market’s reaction to the growing XRP ETF application. While the response to the last application was weak, a new application could change things. In such a scenario, XRP could jump to $0.60.

The article XRP could plummet 15% after sending tokens to exchange; understand was first seen on BeInCrypto Brasil.

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