Ripple’s XRP Token Faces Bearish Pressure Amid Price Decline
Ripple’s XRP token has experienced a significant decline in price, breaking below its ascending trendline and sparking concerns among traders and investors. This bearish shift in the cryptocurrency Market has raised alarms over the potential for further downward movement in XRP's price.
Bearish Signals Take Hold
The price of XRP is currently hovering around $0.5329, unable to break past key resistance levels. After being rejected from its daily resistance level of $0.544, the Cryptocurrency has struggled to maintain its upward momentum, increasing fears of a potential downtrend.
Furthermore, XRP’s price is now below the 200-day EMA, serving as a resistance point. If the token fails to reclaim the critical threshold of $0.544, it could see a further decline of up to 18%, potentially revisiting its low of $0.432 from August 5.
The MACD indicator on the daily chart has also confirmed a bearish crossover since October 2, indicating strong downward momentum in the short term. Combined with red histograms below the neutral level, this signals that bears are firmly in control of XRP’s price trajectory.
On-Chain Data Reflects Growing Concerns
On-chain data further highlights the growing pessimism surrounding XRP. The Network Realized Profit/Loss (NPL) indicator surged from September 30 to October 1, indicating that holders were selling their tokens at a profit, adding downward pressure to the price.
Additionally, daily trading volumes for XRP have plummeted, dropping from $3.13 billion to $704.78 million over the weekend. This sharp decline in volume suggests a lack of interest in the token, potentially leading to a liquidity crunch that could impede XRP’s ability to recover in the near term.
XRP’s Future Outlook
XRP remains below the 50-day and 200-day EMAs, signaling a bearish outlook for the token. Traders and investors will closely monitor any movements around the $0.535 level, as a break above could propel XRP towards $0.55 and even $0.66 if further gains are made.
However, failure to reclaim these levels could push the token lower, with support likely forming near $0.50. With the RSI for XRP at 39.93, there is still room for further downside before reaching oversold territory. The cryptocurrency’s near-term price action will depend on various external factors, including regulatory updates, market sentiment, and overall demand in the crypto space.
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