- XRP loses more than 5% of its value in 24 hours
- XRP’s market sentiment shifted from greed to neutral
Payments-focused cryptocurrency XRP plunged to $0.50 for the first time in three months. In doing so, it is staring at a real danger of reversing all the gains made since its mid-October rally.
XRP sinks deeper
The market’s sixth-largest digital asset was in a free fall at the time of writing, depreciating by more than 5% in a 24-hour period, according to CoinMarketCap. In fact, trading volumes exploded by 80% around the same time, implying that traders have been dumping the coin en masse.
Ironically, the decline followed hours after popular technical analyst Ali Martinez spotted a buy signal for the asset on the 3-day chart. He claimed that XRP “could be gearing up for a rebound.”
#Ripple Market Insight: The TD Sequential has proven its accuracy in forecasting $XRP‘s movements on the 3-day chart. Currently, it’s showing a buy signal, suggesting that #XRP could be gearing up for a rebound. pic.twitter.com/IqfjM0LksJ
— Ali (@ali_charts) January 22, 2024
AMBCrypto analyzed few more of XRP’s technical indicators to get a fair idea about the situation.
On the daily chart, the Relative Strength Index (RSI) was in the oversold territory at press time. While this was indeed a bearish sign, such levels generate buy signals. Moreover, the Moving Average Convergence Divergence (MACD) moved below the signal line and was negative, indicating the dominance of bearish forces.
Source: Trading View
Whales aren’t buying XRP
XRP’s price depreciation impacted the overall profitability of asset holders too. According to AMBCrypto’s analysis of Santiment’s data, most traders would realize losses of 5.61% at the current price if they choose to sell their coins.
Source: Santiment
These conditions could restrict short-term traders from investing in XRP. However, seasoned traders, who believe in the long-term prospects of the coin, could buy the dip to consolidate their positions.
As it turned out, XRP whale transactions did spike as the price crashed. However, there wasn’t any meaningful jump in the addresses of whale user cohorts, showing that whales did not actually accumulate.
Source: Santiment
Is your portfolio green? Check out the XRP Profit Calculator
At the time of writing, XRP’s market sentiment had shifted from greed to neutral, according to AMBCrypto’s scrutiny of Hyblock Capital’s data. It remains to be seen if the asset manages to build some meaningful buying pressure in the days ahead.
