Understanding XRP’s Bearish Turn
Ripple’s XRP has recently undergone a significant downward trend, capturing the attention of cryptocurrency investors and market analysts. After losing its $2.23 support, the coin’s price has declined further, currently trading around $2.05—down by approximately 2.35% within the last 24 hours. Despite this drop, trading volume skyrocketed by nearly 196%, showing increased market participation and investor activity, with a reported $3.27 billion in trading volume.
On-Chain Data Signals Market Movements
CoinGlass data revealed significant negative spot netflow for XRP. Over $22.43 million worth of XRP tokens has moved off exchanges in just one day—a sign of potential accumulation. Investors appear to be withdrawing tokens amid the price decline. This could indicate market confidence despite short-term challenges.
Key Levels of Support and Resistance
Derivatives market data has highlighted key battlegrounds for XRP pricing. Cumulative Long Liquidation Leverage near $2.017 has established a critical support zone, while $2.113 is now acting as resistance due to Cumulative Short Liquidation Leverage. Traders remain focused on whether XRP’s price will gravitate towards these liquidity clusters, which play a significant role in shaping its short-term movement.
Institutional Activity Continues
Meanwhile, institutional investors remain active. According to SoSoValue, U.S. spot XRP ETFs recorded a daily net inflow of $4.93 million, and cumulative net inflows across U.S. spot XRP ETFs stand at an impressive $1.22 billion. Despite bearish sentiment in the short term, such inflows underline growing interest and participation from institutions.
Technical Outlook and What’s Next
Technical analysis indicates a challenging road ahead for XRP. Failing to hold above its 50-day Exponential Moving Average (EMA) could result in another 6.5% drop, potentially bringing the price to $1.90. Indicators like the Average Directional Index (ADX) further suggest strong downside momentum, with ADX currently at 28.49—above the 25 threshold, emphasizing the ongoing trend.
However, on the weekly chart, XRP maintains horizontal support near $2.02. As long as this level holds, analysts note a broader bullish structural possibility in higher timeframes.
Considering Long-Term Strategies
For long-term investors, price dips like these could present opportunities to accumulate XRP while prices are lower. However, it is essential to balance short-term volatility with potential long-term gains. Remember to conduct thorough research before making any investment decision.
Enhance Your Crypto Experience
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Cryptocurrency markets remain volatile and subject to rapid fluctuations. Approach investments cautiously and keep abreast of market trends to make informed decisions.
