Ripple (XRP) sellers appear to have overcome the pressure previously exerted by buyers, BeInCrypto noted. Over the past 30 days, the price of XRP has increased by 177%, driven by several factors putting sellers at a disadvantage.
However, recent data shows that the bullish momentum the altcoin enjoyed has temporarily stalled. If sustained, this could put XRP’s rally on hold for some time.
Ripple Sees Increased Selling Pressure and Low Demand
According to CryptoQuant, XRP's Buy/Sell ratio has dropped to 0.93. This ratio helps determine whether bullish sentiment is dominating the derivatives market or bearish sentiment is in control.
Typically, a ratio below 1 suggests that buyers are in the lead, indicating a more bullish outlook. However, this is not the case at the time of writing as XRP sellers appear to have the upper hand. This current condition could be linked to profit-taking among traders who had long positions open.
In most cases, when traders take their profits, it puts downward pressure on the price. Therefore, it is no surprise that the price of XRP has dropped to $1.42 at the time of publication.
XRP Buy/Sell Ratio. Source: CryptoQuant
Furthermore, the Network Growth metric further suggests that XRP sellers are in control. Network Growth tracks the number of new addresses making their first successful transaction on the blockchain, providing insights into the token’s adoption and market traction.
When network growth increases, new market participants buy the token. However, this is not the case for XRP. According to Santiment, Network Growth on the XRP Ledger has slowed significantly. If this trend continues, it could indicate continued selling pressure, potentially leading to further price drops for XRP.
XRP Network Growth. Source: Santiment
XRP Price Prediction: Time to Drop More
Following the recent development, the Moving Average Convergence Divergence (MACD) on the daily chart has dipped into the negative region. MACD is a technical oscillator that measures momentum using the difference between the 12-period and 26-period Exponential Moving Average (EMA).
When the reading is negative, it means that the momentum is bearish. But when it is positive, the momentum is bullish. Therefore, the reading on the chart below suggests that XRP sellers are in control.
XRP 4-hour analysis. Source: TradingView
If this continues, the altcoin’s price could drop to $0.92. On the other hand, if buyers start taking control, this could change. In such a scenario, the XRP price could rise to $1.63.
The article Ripple’s (XRP) 177% Rally at Risk as Selling Pressure Hits appeared first on BeInCrypto.
