The Number of Addresses in Ripple (XRP) Has Declined! Will the Token's Price Follow?
#Ripple (XRP) may extend its seven-day price decline by closing below its 20-day exponential moving average (EMA) for the fourth consecutive day on May 31. A token trading below this important moving average is a bearish signal because it could indicate that its current price has fallen below its average price over the last 20 days. Investors may view this as an indication that the market trend is shifting towards selling.
His assessment of some of XRP's key technical indicators confirmed the possibility that the altcoin could lose some of its value in the coming days. For example, key momentum indicators are below their neutral points at the time of writing. XRP's relative strength index (#RSI ) was 46.64 and its money flow index (MFI) was 40.96.
The indicators mentioned along with these values show that the demand for #XRP has decreased as market participants prefer to distribute their existing assets instead of purchasing new tokens. The increase in XRP's selling pressure was confirmed by the decrease in active addresses on the chain. According to data from Santiment, XRP's daily active addresses, observed using the 30-day moving average, decreased by 30% last month.
Similarly, the daily number of new addresses created for altcoin transactions dropped by 29% during the same period. In particular, a decrease in the active and new addresses of a token can often herald a decrease in its price. Despite the decline in demand for the altcoin and its price, day traders continued to book profits. XRP's daily trading volume gave a profit/loss ratio of 1.16.
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