For the past few days, XRP, the native token of Ripple Labs, has been struggling to gain momentum, and data suggests that it will likely continue to struggle in the coming days. . This negative speculation is based on the recent activity of investors and long-term holders amid continued market uncertainty.
Bearish On-Chain Metrics
Data from on-chain analytics company Coinglass's spot inflow-outflow metrics indicates that exchanges have seen a significant $62 million in XRP inflow over the past 48 hours. This large influx of XRP tokens on exchanges indicates a possible dump, which could lead to a decline in prices and more selling pressure.
In addition to the large inflow, the long/short ratio, which measures trader sentiment, is currently at 0.92, indicating a bearish outlook as short positions dominate.
However, this is happening at a time when the asset has been experiencing continuous price consolidation over the past six days.
XRP Technical Analysis and Price Prediction
According to expert technical analysis, XRP looks neutral until it breaks out of the ongoing consolidation between the $2.90 and $3.30 levels.
Based on the recent price movement, if XRP breaks the consolidation and closes a daily candle above the $3.32 level, there is a strong possibility that it will rise by 32% to reach the $4.50 level in the coming days. On the other hand, if XRP breaks from the consolidation and closes a daily candle below the $2.85 level, it is likely to decline by 10% to reach the $2.58 level in the future.
On the positive side, the Relative Strength Index (RSI), currently at 65 indicates that XRP is approaching overbought levels but there is still room for a move higher.
Current price momentum
Despite the bearish outlook, XRP is currently trading near $3.25 and has experienced a price increase of 1.60% in the last 24 hours. However, in the same period, its trading volume fell by 35%, indicating lower participation from traders and investors compared to the previous day.
Source: https://coinpedia.org/news/62-million-xrp-offload-onto-exchanges-sell-signal-or-what/
