The price of XRP has fallen in the past month in the midst of a decrease in network activity and the weakening of investors’ demand. Will Token continue to see more corrections?
Summary
- XRP price has fallen by 16.8% in the past month.
- The amount of XRP on Smart Money Wallets has fallen almost 80%.
- XRP acts under the most important progressive averages and risks further correction.
According to data from crypto.news, XRP (XRP) was traded at $ 2.93, an increase of 19% over the past 3 months and 63% higher than the low-to-men low. The third largest cryptocurrency per market capitalization was $ 173.8 billion, with a daily trade volume of $ 6.4 billion.
Many of these profits came to the midst of investor hype after Ripple, the company behind XRP, achieved a decisive victory in his years of legal battle with the US Securities and Exchange Commission.
Part of the win also came when investors will soon anticipate XRP ETF, which could unlock a new institutional demand for token.
Despite the remarkable performance of XRP this year, there are signs that it can be for a correction. Token has already fallen 16.8% in the past month after reaching his annual height last month.
The current data from Nansen shows that the balance of XRP of Smart Money Investors has fallen 80% in the last 30 days. This is a risk because such investors often reduce exposure before the weakness of the market. Retail investors usually follow these movements, which can strengthen price corrections for token.
Supplementary facts From Coinglass shows that Futures traders have also become bearish. Open interest for XRP had fallen from $ 10.94 billion in July to $ 7.56 billion on the press, a sign of reduced speculation of investors.
Moreover, the long/short ratio was less than 1, which means that more traders were placed for a potential disadvantage.
All this has been unraveled because the network has witnessed modest activity on the XRP whides. Facts Dune shows that weekly transactions have reduced 14.8% to 12.4 million, while weekly active addresses fell by 2.1% to 107,340. Investors regard the delay as a sign of weakening network demand, which contributes to Bearish sentiment around the token.
On the daily graph, XRP has fallen under the advancing averages of 20 and 50 days, indicating that Beerarish Momentum is currently dominating.
The relative strength index has also formed a bearish divergence with price action. Such a divergence usually reflects the weakness in the ruling upward trend, because rising RSI values cannot confirm that higher price levels are confirmed. This dynamic often leads to traders taking a profit, which falls and the investor’s interest and the start of the exhaustion of the buyer.
In addition, the Aroon Down indicator is 92.86%, while the Aroon stays up at 7.14%, which strengthens the strength of the bearish trend.
In view of these signals, XRP is positioned for a potential correction to $ 2.70, a level that previously considered important support during the decline of August.
A decisive break under this threshold can open the road for a further decrease to $ 2.30, which coincides with the 23.6% Fibonacci Retracement level.
Publication: This article does not represent investment advice. The content and materials on this page are only for educational purposes.
