The previous week witnessed a downturn in Ripple’s[XRP] value, experiencing a 21.08% decrease. This negative trend has persisted over the last 24 hours, with the asset further declining by 2.45%.
According to CryptoCrypto’s evaluation, there is a likelihood that XRP will continue its descent, driven by bearish technical indicators and market sentiment.
Established Support Levels for XRP
Analysis of Fibonacci retracement lines, a tool used to determine potential levels of support and resistance, indicates the current bearish phase of XRP. It has breached significant support levels at 2.86, 2.69, and 2.53.
Presently, there exist two additional support levels that XRP could reach before a potential price reassessment.
Uncertainty looms over whether the downward trajectory will persist or if there will be a reversal.
The support thresholds for a further decline in XRP stand at 2.296 and 1.995, marking points where a price rebound might materialize.
However, breaching the support at 1.995 could drive XRP’s value even lower on the charts.
Signs Pointing towards a Potential Decline
Technical indicators reveal that both the Relative Strength Index (RSI) and the Average Directional Index (ADX) are signaling a bearish trend that could intensify.
Currently, the RSI remains within bearish territory, staying below the 50 level, with a reading of 37.18.
While showing an upward trend, this could represent a temporary recovery before a further decline as prices drop. A lower low formation in RSI might lead XRP’s value on a similar downward path.
The Average Directional Index (ADX) validates this bearish sentiment with a reading of 28.21. An upward-sloping ADX between 25 to 50 indicates a robust market trend, reflective of XRP’s current scenario.
Should the ADX continue its ascent, it implies that XRP’s value will persist in its downward trajectory from the present level.
CryptoCrypto’s analysis suggests that the ongoing downtrend is likely influenced by spot and derivative sellers.
Market Forces Impacting XRP Movement
Data from the exchange netflow, which monitors spot traders’ actions based on positive (sales) or negative (purchases) movements, indicates a prevalence of sellers in the current market.
Recent statistics on XRP’s exchange netflow display a surge in sales, with $17.60 million worth of the asset sold within the last 24 hours as spot holders offload their holdings.
Simultaneously, derivative traders are equally involved in selling activities, as evidenced by the Funding Rate turning negative, signaling a diminishing confidence in the market.
A negative Funding Rate denotes the dominance of sellers who, losing faith in the market, opt to pay the premium. If this bearish trend persists, XRP’s decline could be imminent.