As technical indicators point to possible difficulties for the price of the altcoin, crypto investors are attentively watching ripple (XRP). For four straight days XRP has closed below its 20-day exponential moving average (EMA), putting it in what analysts consider as a bearish zone.
With the average price over the past 20 days acting as a resistance level, the 20-day EMA indicates a change in market attitude. Analysts caution of a probable decline in demand given the present price trading below this important benchmark.
XRP is trading at $0.52 as per the most recent Coingecko statistics, it has dropped 0.3% in the previous 24 hours and 3.1% over the past week.
XRP Momentum Indicators Bearish
Momentum indicators of Ripple token help to further strengthen the pessimistic view. Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) show declining buying power and possible selling activity since they both lie below their neutral points.
Furthermore raising questions is a notable decline in XRP’s active on-chain addresses. Data from Santiment shows a 30% drop in daily active addresses over the previous month, usually considered as a forerunner to a price decline due of lowered network activity and user engagement.
For Ripple token investors, there are certain benefits even with the bearish indications. Daily transaction volume research shows that 1.16 transactions generate profits for every transaction ending in a loss, implying short-term trading chances for astute investors.
Furthermore, XRP’s Market Value to Realized Value (MVRV) ratio is currently negative, meaning Ripple token is undervalued and can offer investors looking for assets below their historical price points a buying possibility.
Though present bearish attitude, XRP’s price is expected to climb by 20% to $0.626627 by July 1, 2024. At 72 the Fear & Greed Index shows great investor greed, indicating robust purchasing behavior but also a risk of overbought conditions and possible price falls should sentiment change.
With price swings of 2%, XRP has showed a mix between price rises and declines during the previous 30 days—47%). This consistency points to a consistent market, which helps to explain the present negative attitude even with an excellent long-term price projection.
