As a seasoned crypto investor with battle-tested nerves and a portfolio that’s seen more ups and downs than a rollercoaster, I must admit, the recent surge of XRP to a six-year high was a breath of fresh air. However, the past 24 hours have been a stark reminder that in this wild world of digital assets, even the most promising gains can be fleeting.
On December 2nd, the value of XRP reached a six-year peak at $2.72, placing it among the top-performing alternative cryptocurrencies that have surpassed Bitcoin (BTC) in this quarter. This price surge coincided with an increase in trading volume on the XRP Decentralized Exchange (DEX) to $61 million, fueling speculation that XRP might spearhead the upcoming altcoin rally.
Over the past day, there’s been a shift in the XRP market, causing its current price to sit at approximately $2.21. Here are some reasons why reaching a new high by the end of 2024 might prove difficult for this altcoin.
DEX Trades on the Ledger Slide Amid Altcoin Season Pullback
In the last 3 months, the value of XRP increased an impressive 282%. This stands out as exceptional growth compared to other alternative cryptocurrencies. But, recently its progress seems to have slowed down; there’s been a drop of 6.09% over the past day.
The Altcoin Season Index, which indicates an ‘altcoin season’ if 75% of the top 50 non-Bitcoin coins outperform Bitcoin, has identified XRP, Hedera (HBAR), and Bitget Token (BGB) as key players during this timeframe. Currently, the index stands at 78, indicating a strong altcoin season.
Despite the recent drop in prices for various altcoins, such as XRP, the Altcoin Season Index has dipped to 47, signaling a move towards more neutral feelings. If this trend persists and weakens further, there’s a possibility that the price of XRP could slide beneath $2.
The trading volume on the XRP Decentralized Exchange (DEX) serves as one piece of evidence for the ongoing downtrend. This volume represents the total worth of the cryptocurrency exchanged on the XRP Ledger (XRPL) across a given timeframe.
For those who might not be aware, the XRPL (X Rapid Ledger Protocol) is the project’s decentralized public blockchain that enables trading of XRP and swift transactions of various currencies. As the volume on Decentralized Exchanges (DEX) increases, it typically means growing interest or demand for the token. Conversely, a decrease in DEX volume usually indicates reduced demand.
Previously, on December 2nd, the trading volume for the XRP Decentralized Exchange surged to a substantial $61.01 million. However, as of today, that volume has significantly decreased to just $2.66 million. This suggests a drop in the traded token value amounting to around $58 million. If this trend continues, XRP’s price could potentially experience ongoing downward pressure.
XRP Price Prediction: No All-Time High in Sight
According to the 4-hour XRP/USD graph, an ominous event known as a “death cross” has occurred for the altcoin. This happens when the longer-term Exponential Moving Average (EMA) falls beneath the shorter EMA, which is typically interpreted as a negative or bearish signal.
The term “golden cross” refers to a situation where a longer-term moving average (in this case, the 50 EMA or yellow line) surpasses a shorter-term moving average (the 20 EMA or blue line). In other words, when you look at the graph, you’ll notice that the 50 EMA has climbed above the 20 EMA as the price itself has fallen below these indicators.
If the current trend persists, the value of XRP may dip down to approximately $1.75. Conversely, if investor sentiment becomes more positive and Exponential Moving Averages (EMAs) display a golden cross formation, the trend could potentially reverse. In this case, the price of XRP might surge towards $2.90.
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2024-12-20 16:32