XRP Price Outlook: Signs of Selling Pressure Signal Downtrend Ahead

Analysis4wks agoUpdate 6086cf...
36 0

In Brief

  • Ripple price has already lost the support of the 50-day EMA and is close to losing the 100-day EMA as well.
  • Long-term holders have been moving their holdings, which historically has been a signal for corrections.
  • The bearish trend is yet to gain strength, giving XRP a shot at bouncing back from $0.60.

Ripple (XRP) price has been in a downtrend for the better half of the month, and these bearish signals are getting stronger.

Will the altcoin end up losing crucial support since XRP long-term holders are losing conviction in the asset?

Ripple Investors Lose Conviction

The long-term holders are one of the most important cohorts that impact the XRP price. These investors tend to hold an asset for a period of more than 12 months. Thus, selling from them is considered to be a confirmed bearish signal.

Their actions are observed by the total age consumed when they move their holdings between addresses. The higher the spike, the larger the amount of tokens moved. In the case of Ripple, their movement has not been as significant as instances in the past. Nevertheless, this is a signal that these investors are losing conviction.

XRP Price Outlook: Signs of Selling Pressure Signal Downtrend Ahead
Ripple Age Consumed. Source: Santiment

Historically, during such occurrences, the XRP price has witnessed corrections most of the time. The same outcome can be expected this time around as well.

Read More: Ripple (XRP) Price Prediction 2024/2025/2030

A bearish move would be confirmed once the Relative Strength Index (RSI) falls below the neutral line at 50.0. RSI is a momentum oscillator measuring the speed and change of price movements, indicating overbought and oversold conditions.

XRP Price Outlook: Signs of Selling Pressure Signal Downtrend Ahead
Ripple RSI. Source: TradingView

Thus, the chances of a decline would increase if the indicators fall into the bearish zone.

XRP Price Prediction: Crucial Support Lost

XRP price is presently trading above the $0.606 support level. The altcoin has already slipped below the 50-day Exponential Moving Average (EMA). If the $0.606 support is invalidated, too, the cryptocurrency will lose the 100-day EMA as support.

This will result in further decline, potentially sending Ripple to $0.555.

XRP Price Outlook: Signs of Selling Pressure Signal Downtrend Ahead
XRP/USDT 1-day chart. Source: TradingView

However, per the Average Directional Index (ADX), the bearish trend has yet to gain strength. The latter is still below the 25.0 threshold crossing, which generally suggests that the active trend is gaining strength.

Read More: Everything You Need To Know About Ripple vs SEC

So, if the XRP price sees no immediate bearishness and manages to bounce back from $0.606, it might have a shot at recovery, potentially invalidating the bearish thesis.

This article is sourced from the internet: XRP Price Outlook: Signs of Selling Pressure Signal Downtrend Ahead

Related: Chainlink (LINK) Price Aims for $24 as Market Optimism Fuels Growth

In Brief Chainlink (LINK) exhibits bullish signs, attracting investors’ interest in a potential climb higher. Recent data suggests LINK accumulation, while negative sentiment decreases, indicating a shift towards optimism. LINK’s price prediction suggests a potential climb supported by buyer interest, although breaking below $20.70 could invalidate this outlook. Chainlink (LINK) price exhibits signs of a bullish uptrend shaped by compelling market data. The convergence of key indicators suggests a climb that seasoned and novice investors watch with keen interest. Dive into the analysis of LINK’s recent exchange data, holder profitability, and community sentiment to understand why a price target of $24 could happen soon. Holders Are Accumulating LINK Recent observations on LINK exchange net position change reveal a compelling narrative of accumulation. A notable surge in LINK tokens on exchanges…

 

© Copyright Notice

Related articles

No comments

You must be logged in to leave a comment!
Login immediately
No comments...