- XRP prices continued to decline over the last few weeks as traders got liquidated
- New users lost interest in XRP, and overall sentiment around the token fell
The wider crypto sector has witnessed a massive pullback over the last few weeks. XRP has been no exception either, with the altcoin losing a significant percentage of its valuation over the aforementioned period.
XRP continues to see red
However, this ongoing decline in price is part of a larger trend that started on 13 March. After testing the $0.7440-level, XRP’s price exhibited multiple lower lows and lower highs, establishing a bearish trend. The biggest fall happened after XRP tested the $0.601-level, following which, the price of XRP fell dramatically by 19%.
At press time, XRP was trading at $0.4965. For the price to hit the $.6009-level, a large amount of bullish momentum would be needed.
At the time of writing, the RSI (Relative Strength Index) had a reading of 45.97. This indicated that buying momentum for XRP was relatively weak. Moreover, the CMF (Chaikin Money Flow) for XRP had started to fall too. The declining CMF is a sign that the money flow for XRP has materially fallen.
Source: Trading View
This decline in prices affected traders significantly. For example – In the last 24 hours alone, $2.13 million worth of long positions were liquidated. The bearish sentiment projected by traders grew to 51.2% over this period too.
Source: Coinglass
Additionally, AMBCrypto’s analysis of Santiment’s data revealed that the the network growth for XRP declined. This means that new addresses have been losing interest in XRP. A lack of interest from new addresses would be detrimental for the growth of XRP in the future. Moreover, the velocity around XRP fell as well.
Declining velocity is a sign that the frequency with which XRP was trading at had declined materially over the past few days.
Source: Santiment
Word on the street
XRP also recorded a decline in popularity on the social front. Social volume around the token fell materially over the last few days. Coupled with that, the weighted sentiment for XRP fell too. The declining weighted sentiment implies that the number of negative comments around the token are starting to outnumber the positive ones.
Read Ripple’s [XRP] Price Prediction 2024-25
Simply put, the rising skepticism around XRP could prove to be fatal for its price in the future. The next 7 days, especially after Bitcoin’s halving, could be key to ascertaining where it goes.
Source: Santiment