After last night’s decline in the cryptocurrency market, price movements have calmed. XRP also showed a near-neutral positive outlook. Despite the price movement, the formation in XRP could be a prelude to a possible bullish activity.
XRP Comments
CoinMarketCap data shows that XRP exhibited independent movements from the market. At the time of writing, XRP was trading at $0.6025 after a 0.54% increase in the last 24 hours. Additionally, the market volume was over $33 billion.
XRP’s weekly price movement resulted in a long-term descending channel formation. This formation emerged in July last year during stagnant market conditions specific to XRP. Since then, the formation has persisted.
Will XRP Rise?
XRP’s on-chain data provides important insights into whether a potential rise scenario will occur. According to data from Santiment, XRP’s trading volume also declined during the price drop. This positive outlook indicates that current investors are unwilling to sell their XRP at low prices.
Additionally, the supply on exchanges, indicating investors’ reluctance to sell, also decreased. This decrease in supply could create scarcity in the market and increase buying pressure. On the other hand, the MVRV ratio showed a negative outlook.
XRP’s fear and greed index was at 62, indicating the market remained in the “greed” zone. Generally, a value rising to the greed zone suggests an increased likelihood of a price correction.
Other indicators for XRP also showed a downward trend. The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) also reflected a downward trend in the charts. More importantly, the charts showed that XRP touched and retreated from the upper boundary of the Bollinger Bands.
Bollinger Bands movement could be just a correction. If this is indeed a correction, XRP might rise again in the coming days.
