XRP’s MACD Signal: A Potential Turning Point
In the ever-evolving landscape of cryptocurrencies, traders and analysts are paying close attention to XRP. A recent bearish monthly MACD (Moving Average Convergence Divergence) cross on XRP’s chart is reminiscent of historical trends in 2018 and 2022, which were followed by extended market shifts. This critical technical indicator suggests that a significant event might be unfolding for XRP investors.
What the MACD Indicator Means for XRP
The MACD is a popular momentum-based indicator that helps traders identify potential trend reversals. For XRP, the newly formed monthly bearish cross aligns with similar patterns observed in 2018 and 2022. These patterns marked the beginning of prolonged market declines, as selling pressure dominated during these phases.
For instance, the 2018 MACD cross occurred right after XRP hit its peak, leading to a multi-year price decline. Traders were met with reduced momentum and extended selling activity. Similarly, the 2022 cross marked the end of a recovery phase, steering XRP into another quiet trading period.
ETF Inflows: The Role of Limited XRP Circulating Supply
A new dynamic entering the XRP ecosystem is ETF (Exchange-Traded Fund) accumulation. Currently, only 42.87% of XRP’s total supply is considered truly circulating, creating a limited pool of liquid XRP available to the market. ETFs are steadily acquiring XRP holdings, further reducing this available supply.
According to crypto expert SMQKE, ETFs hold only 0.75% of XRP’s total supply, but because they are targeting the already limited 42.87% pool, the impact on the circulating supply is amplified. This supply-driven demand could tighten market conditions, potentially influencing XRP price volatility in the coming months.
Analyzing Supply-Driven Demand and Market Trends
The intersection of technical momentum and supply-side constraints has brought XRP under the microscope for analysts. ETFs don’t need to acquire the entire circulating supply to create notable market changes. Their steady demand from the liquid portion of XRP’s total availability is sufficient to influence trading conditions.
This dual impact—marked by a major bearish MACD signal and the ETF-driven reduction of XRP supply—suggests that XRP’s market structure could undergo substantial changes in 2025. Both institutional and retail traders are actively observing these developments as they evaluate potential risks and opportunities.
What’s Next for XRP?
As XRP’s trading setup becomes increasingly complex, the focus remains on two critical factors: the evolving MACD trends and the effects of ETF inflows. Cryptocurrency traders are advised to closely monitor momentum indicators on monthly charts, alongside changes in XRP’s circulating availability.
For those considering an investment in XRP or the wider cryptocurrency market, staying updated on these developments is key to making informed decisions.
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