XRP Bears Continue to Drive Price Down, Risks Further Losses
XRP continues to decline, down 10% over the past week as bearish momentum increases.
The fourth largest cryptocurrency in market capitalization is still under pressure, and buying interest hints could cause further losses.
XRP’s prospects worsen as buying pressure fades
XRP has mostly remained within the downward parallel channels since reaching an all-time high of $3.40 on January 16. This is a bearish pattern indicating a downward trend when the price of an asset moves between two downwardly sloping parallel trend lines.
When the price of an asset is traded within this channel, it marks a period of decline Sellers dominatethe purchase activity is very low. This has put a huge downward pressure on XRP prices over the past month.
XRP is currently trading at $2.11, exchanging below its 20-day exponential moving average (EMA). This key moving average measures the average price of assets over the past 20 trading days, making the recent price larger to reflect Short-term trend.
When the asset’s price is below its 20-day EMA, this indicates that sales pressure is high and the asset is in a bearish stage. Unless the purchase interest increases to delay the price of the token above the EMA, this means a low momentum for XRP.
Additionally, XRP’s Chaikin currency flow (CMF) is currently on a downward trend and is expected to violate its neutral line. This indicator measures Currency inflow From assets, it is 0.02 as of the time of writing.
When the CMF of the asset tries to drop below zero, it reflects weak buying pressure and weakening sales dominance. This suggests that money is flowing out of XRP, not XRP, thus enhancing the bearish outlook.
XRP faces bearish pressure: Will it collapse to $1.47?
If new demand remains trivial, the XRP risk drops below $2. In this case, it could drop to $1.47, with the low reaching in November.
On the other hand, if sales pressures are weakened and XRP sees a rise in buying activity, it could push its price higher at $2.81 $3.40 All-time high.
Disclaimer
and Trust Project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Beincrypto is committed to accurate and impartial reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions,,,,, Privacy Policyand Disclaimer Updated.
