Why the XRP Token Price May Fall Below $1
Ripple’s XRP surged to a three-year high of $1.26 on Nov. 16, but has since fallen back to $1.15, down 9% over the past two days.
The market is currently facing increasing selling pressure, fueling concerns that the XRP token could soon fall below the critical $1 threshold.
Ripple sees surge in sales activity
difference between XRP price and trading volume The past 24 hours have been a telling indicator of the surge in selling pressure. During this period, the altcoin’s value increased by 7%, while trading volume plummeted by 55%.
When asset prices rise and trading volume falls, it indicates a decline in market participation. Price increases are more sustainable when trading volume increases, indicating higher market interest.
However, when price rises and volume falls, the rally loses momentum. It suggests there are fewer actors driving price changes, potentially causing prices to be less reliable or more prone to reversals.
In addition, a XRP Relative Strength Index Heat Map (relative strength index) indicates that four out of the six time frames are overbought, suggesting a simultaneous ongoing price correction.
RSI measures market conditions that indicate overbought and oversold conditions for an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and should fall. On the other hand, an RSI value below 30 indicates that the asset is overbought and may be due for a rebound.
XRP’s overbought conditions across multiple timeframes point to one clear conclusion: the market is overheated. Signs of buyer fatigue are emerging, raising the possibility of a continued decline in the price of the XRP cryptocurrency.
XRP Price Prediction: Sub-$1 Price Levels Are Coming
Now, XRP is trading at $1.15maintaining support at $1.06. If the selling pressure escalates, the altcoin may test this support level. If broken, the price could fall below the psychological $1 mark, potentially reaching $0.93. Continued selling could lead to XRP falling further lower, with a possible target of $0.82.
However, recovery Demand could drive XRP back higher to three-year highs of $1.26 and above, invalidating the above bearish outlook.
Disclaimer
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