Markets
Ripple (XRP) Price Heads towards $0.42 as Demand Fades?
The number of Ripple (XRP) tokens held on cryptocurrency exchanges amounts to 2.84 million XRP, which is valued at $1.34 million at current market prices.
This represents the lowest amount of XRP tokens held on exchanges since the start of the year.
Ripple sees low sell-offs
At the time of writing, token supply on exchanges was 2.84 million XRP, the lowest level since January 1. When the supply of an asset on exchanges decreases, its total amount held on cryptocurrency exchanges decreases.
Wavy offer on exchanges. Source: Most Holy
This could be due to investors holding their tokens in a hardware walletstaking on decentralized finance platforms (DeFi), or in general refraining from selling one’s holdings in anticipation of a future rise in prices.
However, XRP’s recent price action has shown no potential for a significant rebound in the near term. At the time of writing, XRP is trading at $0.47. In the last month the value of the altcoin has collapsed by 12%.
To know more: Everything you need to know about Ripple vs SEC
For context, the altcoin revisited its year-to-date low of $0.46 on June 24, marking its second such high this month alone.
The steady decline in the value of XRP is partly attributable to the losses recently suffered by its holders. For example, the daily trading volume to profit/loss ratio (evaluated using a 30-day moving average) is 0.88 as of this writing.
This means that only for every XRP transaction that ends in a loss 0.88 transactions return a profit.
XRP Price Prediction: Bears are in Control
XRP price action readings on a daily chart show declining demand for the altcoin. For example, its Chaikin Money Flow (CMF), which measures the flow of money into and out of its market, is currently 0.06.
A negative CMF value is a sign of market weakness. It is a bearish signal that suggests an exit of liquidity from the market. Traders often interpret this as a sign of a further decline in the value of an asset.
The moving average convergence and divergence (MACD) pattern of XRP confirms the bearish sentiment. As of this writing, the token MACD line (blue) is below the signal (orange) and zero line.
The indicator identifies changes in the strength, price direction and momentum of an asset. When the MACD line falls below the signal line, it is a bearish signal, which suggests that selling pressure is more significant than buying activity.
If demand for XRP continues to collapse, its price will drop to $0.42.
To know more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if sentiment changes from bearish to bullish, the price of the token will rise to $0.49.
Disclaimer
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