Ripple's cryptocurrency, XRP, which experienced an astonishing 350% price increase within just 30 days, is now witnessing a downturn from its peak of $2.80. This decline appears to be closely linked to a significant reduction in XRP exchange outflows, according to recent analytical data. If this negative trajectory persists, XRP might continue to relinquish its hard-earned gains.
Recent XRP exchange outflows totaled 980.65 million. As of now, these outflows have plummeted to 44.17 million, marking a substantial difference of 936.48 million. This measurement serves as an indicator of tokens withdrawn from exchanges, generally suggesting holders’ willingness to sell.
An increase in this figure typically denotes a reluctance to sell, paving the way for price hikes. Conversely, declining outflows hint at diminishing bullish sentiment, potentially leading to price drops.
Currently, XRP trades at about $2.33. The notable reduction in exchange outflows since yesterday values at approximately $2 billion. If these conditions persist, XRP's valuation could face downward pressure.
Furthermore, as per analysis by Santiment, XRP's Weighted Sentiment has experienced a sharp decline, from 6.75 down to 0.035. This metric measures market perception, capturing whether traders feel optimistic or skeptical (bearish) about a cryptocurrency’s prospects. An upswing in sentiment reflects growing enthusiasm and bullishness, whereas a downfall suggests a shift towards bearishness, signaling waning confidence in the market. If this continues, demand for XRP could weaken, further impacting its price.
Examining the daily chart, XRP displays three successive red candlesticks, indicative of mounting selling pressure on this altcoin. Analysis of trading volumes corroborates more sellers than buyers. This trend, if sustained, could drive XRP’s price downward. Should exchange outflows decline further, the price might fall to $1.90.
In an acutely bearish market, XRP could even descend to as low as $1.46. analysts say. However, a potential reversal could occur if exchange outflows surge, driving the price potentially up to $2.90.