Ripple’s XRP has been facing challenges in establishing a clear direction following a bearish performance in the recent week. This struggle raises questions about the level of interest in the digital asset and whether there are forces suppressing its price.
Despite the optimistic sentiment surrounding XRP in recent times, the actual price movement does not seem to align with this positivity.
The beginning of October saw XRP starting on a bearish note, leading to a significant drop of close to 20% within the first week of the month.
Typically, such rapid declines would attract buying interest at lower prices, but XRP did not witness notable accumulation during this period.
While other major cryptocurrencies showed signs of bullishness over the weekend, XRP’s price action remained relatively stagnant, hovering around the $0.53 mark.
The flat price movement is reflected in the Relative Strength Index (RSI), although the Money Flow Index (MFI) for XRP hinted at some underlying accumulation activity.
Although there is limited evidence to suggest an imminent recovery for the Ripple-native coin, this stagnation may not be unique to XRP alone.
Mainstream cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have also been struggling to sustain the positive momentum observed during the weekend.
Hence, this stagnation is more a reflection of the broader market conditions rather than just a lack of demand for XRP in isolation.
Battleground Between XRP Bulls and Bears
As mentioned earlier, the money flow indicator for XRP indicates some renewed interest in the coin, which is corroborated by recent buy and sell data.
An analysis of on-chain data revealed a notable uptick in buying volume over the past couple of days. However, the impact of these bullish volumes was offset by selling pressure.
This scenario suggests that XRP’s sideways movement is not due to low trading volume or lack of demand but rather a situation where bullish attempts are being met with resistance.
Such price action could imply that XRP is currently in a zone where market manipulation is likely to occur.
While signs of price manipulation do not offer clear insights into the next price direction, potential scenarios could involve a further decline to trigger selling pressure, followed by a sharp upward movement that could lead to forced liquidations.
Alternatively, the market might opt to navigate through this phase cautiously, gradually building up momentum for a potential bullish breakout. The neutral market sentiment prevailing since last week might also contribute to the current liquidity conditions.