As a seasoned analyst with over two decades of experience in the financial markets, I have seen bulls and bears dance to the rhythm of market dynamics countless times. The recent surge in XRP‘s price has indeed been impressive, but the current trend seems to be shifting towards the sellers, which is a reminder that no rally lasts forever.
It seems that sellers of Ripple (XRP) are currently dominating the market, as reported by BeInCrypto. Over the past month, the value of XRP has surged by 177%, with various factors contributing to this rise and causing bears to lose their footing.
On the other hand, fresh data indicates a brief halt in the upward trend of XRP’s price surge. If this trend continues, it might postpone XRP’s rise for a while.
Ripple Sees Rising Selling Pressure, Low Demand
Based on data from CryptoQuant, the Taker Buy/Sell Ratio for XRP stands at approximately 0.93. This figure indicates whether the derivatives market is more influenced by bullish or bearish sentiments. A ratio closer to 1 suggests that buying activity is higher than selling activity (bullish sentiment), while a ratio below 1 implies that selling activity exceeds buying activity (bearish sentiment).
Generally speaking, when a ratio falls below 1, it’s a sign that buyers are in control and we might expect a positive trend. But at present, it appears that XRP sellers are dominating the market, suggesting a less optimistic outlook. This situation may be due to traders cashing out after having held long positions.
Typically, when traders decide to sell their profits, it tends to lower the market price. So, it’s not unexpected that at this moment, the price of XRP stands at $1.42 due to such selling activities.
Moreover, the Network Growth indicator points towards a dominant role of XRP sellers. This metric counts the appearance of fresh addresses that have successfully executed their initial transaction on the blockchain for the first time. It offers valuable insights about the token’s popularity and market momentum.
When the expansion of a network increases, typically more investors get involved by purchasing its token. Yet, contrary to most networks, XRP’s Network Growth, as per Santiment, has noticeably decreased. Should this trend persist, it might suggest ongoing selling pressure, which could potentially cause further drops in the price of XRP.
XRP Price Prediction: Time to Go Lower
Based on the latest updates, the Moving Average Convergence Divergence (MACD) on the daily graph has fallen into the negative zone. This MACD is a technical indicator that calculates momentum by comparing the 12 and 26-day Exponential Moving Averages (EMAs).
If the indicator on the chart shows a negative value, it implies that the market trend is leaning towards a downturn, or sellers have more influence. On the other hand, if the value is positive, it indicates a bullish trend where buyers dominate. Consequently, since the reading on the provided chart is negative, it suggests that XRP sellers currently hold the upper hand in the market.
If things continue as they are, the value of the altcoin might decrease to $0.92. However, if buyers step in and gain control, the situation could flip, potentially causing the price of XRP to rise to $1.63.
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2024-11-26 15:58