XRP fails to test 6-year pattern, ‘overvalued’ concerns rise: More decline?
- The price of XRP has fallen by more than 11% in the last 24 hours.
- A few market indicators suggest that the downtrend may be changing.
Since the stock market crash, Ripple (XRP) the price has seen corrections and has yet to show any signs of recovery.
The worst is yet to come, as the token failed to test a long-term uptrend, hinting at further price declines.
XRP has hurdles to overcome
According to CoinMarketCap, the price of the token has fallen by more than 18% in the last seven days. In the last 24 hours alone, the token saw a double-digit decline and fell by 11%.
At the time of writing, XRP was trading at $0.4844 with a market cap of over $26.7 billion.
At the same time, XRP failed to test a 6-year symmetric triangle pattern as its value fell below $0.5.
Since the token was unable to test the pattern, investors could see the value of the token drop further in the coming days.
AMBCrypto’s analysis of Santiment data highlighted a number of bearish moves. For example, the token’s MVRV ratio declined sharply last week.
After a decline, its NVT ratio also gained momentum, suggesting that XRP was overvalued.
Additionally, the token’s daily on-chain trading volume in terms of losses has increased sharply over the past few days, which can be attributed to the market crash.
However, XRP derivatives metrics looked bullish. His open interest dropped sharply. This triggered a trend reversal that could happen soon, allowing the token to recover from its recent losses.
The financing rate has also fallen. Usually, prices tend to move in the opposite direction to the funding rate, suggesting a possible price rise in the coming days.
A new downward trend coming?
AMBCrypto then analyzed the daily chart of XRP to better understand which direction it was heading. XRP price has touched the lower limit of the Bollinger bands.
The token’s relative strength index (RSI) has entered the oversold zone, suggesting that buying pressure on the token may increase. The Chaikin Money Flow (CMF) also increased slightly, indicating a slight rise in prices.
However, nothing can be said with complete certainty, as the global geopolitical scenario has become unstable.
The ongoing conflict in the Middle East could negatively impact cryptocurrency prices and keep them bearish in the coming weeks.
Read Ripple (XRP) Price Prediction 2024-25
AMBCrypto checked data from Hyblock Capital to find support levels to which XRP could fall if the downtrend continues. We found that the token has support near $0.46.
If the token tests this support, we can expect a bullish rally. However, if things go differently, the price of XRP could drop to $0.42.
News Source : ambcrypto.com
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