Ripple’s (XRP) price is showing signs of a potential retracement. Despite recent bullish momentum, weakening market signals suggest that the altcoin may struggle to maintain its upward trajectory in the short term.
This analysis examines the cooling sentiment around XRP, the factors driving this shift, and what investors can expect as the asset faces a possible price correction.
Ripple Flashes Sell Signal
According to Santiment data, XRP’s price Daily Active Addresses (DAA) divergence dropped to -74.46% today. The price DAA shows if user participation on a blockchain is increasing with the price or otherwise.
When the indicator increases and is positive, network activity rises, which could serve as a buy signal. On the other hand, a declining price-DAA is a sell signal because it indicates a drop in user engagement.
If this is the case while the price increases, it means the uptrend is weak. Considering XRP’s current condition, the price could decrease if it remains the same.
Read more: 10 Best Altcoin Exchanges In 2024
The Money Flow Index (MFI) is another indicator suggesting a potential drop. The MFI helps investors assess the flow of money in and out of a cryptocurrency.
When the Money Flow Index increases, it shows that more money is flowing into the asset, signaling increased buying pressure. Conversely, a decrease in the MFI indicates an outflow of liquidity, reflecting selling pressure.
At press time, the MFI has fallen from 81.54 to 65.54, reinforcing the signal reflected by the price-DAA divergence.
XRP Price Prediction: Correction Season
On the daily chart, BeInCrypto observed that the $0.60 region is a major supply region for XRP. As a result, the token has faced resistance in that area on several occasions.
Currently, XRP’s price appears to be inching toward that point. This suggests that the altcoin might face rejection at the level again, even though it seems to have strong support at $0.50.
The last time XRP faced rejection at this point, the price decreased to $0.52. While the price might not experience a similar downtrend, the Fibonacci retracement indicator suggests that XRP could drop to $0.55 in the short term.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if bulls manage to push XRP above the $0.60 resistance, this forecast could be invalidated, potentially sending the price up to $0.66.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/xrp-price-primed-to-retrace/
2024-09-26 17:00:00
