XRP Outflows Threaten New Gains | Airdrop Alert Pro

Ripple’s XRP has seen a significant surge recently, climbing to an all-time high of $3.41 on January 16. However, the rise triggered a wave of profit-taking by traders, which now threatens the sustainability of its recent gains.

As the sell-off continues to intensify, XRP is expected to reverse the current trend.

Ripple rally not supported by high demand

During Saturday’s trading session, XRP spot market outflows totaled $74 million. This was the highest single-day capital outflow in the past 30 days. This is achieved in altcoins A record high was reached on January 16th.

When an asset experiences cash outflows, it indicates that investors may be selling or withdrawing the asset. This signals caution or a lack of confidence, as some participants may take profits or move assets elsewhere.

Large spot outflows like XRP could put downward pressure on asset prices as more sellers enter the market. This could create a negative feedback loop, leading to further selling and further price declines.

and, XRP daily trading volume drops Confirming the surge in selling. The coin’s price has increased by 2% in the past 24 hours. However, its trading volume plummeted 26% during the same period, causing negative divergence.

This negative divergence forms when an asset price rises and trading volume plummets. This indicates a weakening uptrend as the price increase lacks broad market participation.

This divergence suggests that XRP’s rise over the past 24 hours may not be sustainable and may be followed by a reversal or consolidation.

XRP Price Prediction: One of Two Things

At press time, XRP was trading at $3.19. If the sell-off continues, the coin’s price will fall further from its all-time high of $3.41 to Trading support is at $2.45.

However, if the current upward trend is maintained, Retesting all-time highs and rallying past it.