Cryptocurrency units have generally been in decline over the past few weeks. XRP, which investors have been expecting to rise for about 5 years, has also been affected by this trend. During this period, altcoin lost a significant portion of its value. So, what factors have influenced this decline? Which direction do the metrics indicate for Ripple (XRP)?
XRP Price Drop Part of a Larger Trend
XRP price drop seems to be part of a larger trend that started on March 13. After testing the $0.7440 level, XRP formed a downtrend showing multiple lower lows and lower highs. The largest drop came after XRP tested the $0.601 level, with the price falling by 19%.
Currently, XRP is trading at $0.4965. However, it is clear that a significant rise in momentum is needed for the price to reach $0.6009.
Metrics Indicate a Decline
At the time of writing, the RSI (Relative Strength Index) was at 45.97, indicating relatively weak buying momentum for XRP. Moreover, the CMF (Chaikin Money Flow) metric for XRP had also begun to decline. This could be interpreted as a significant drop in money flow for XRP.
This price drop has significantly impacted investors. In the last 24 hours, we saw only $2.13 million worth of long positions being liquidated. Additionally, the anticipated downward trend among traders increased to 51.2% during this period.
Uncertain Future for XRP
Recent data paints a concerning picture for the future of XRP. According to Santiment’s analyses, there is a noticeable decline in the growth of the XRP network. This indicates that new addresses are losing interest in XRP, posing a serious barrier to its growth potential.
In addition, the activity surrounding XRP is decreasing. The slowing pace indicates a significant drop in transaction frequency for XRP, suggesting that it is not being actively used or preferred in the market.
Activity on social media platforms is also decreasing at a concerning level. The social volume around XRP has seen a significant drop in recent days. Furthermore, sentiment for XRP is also decreasing, meaning negative comments outnumber positive ones.
