XRP, the cryptocurrency associated with the Ripple platform, has experienced turmoil in recent weeks. XRP price action showed that bears were firmly in control, ending the brief euphoria following Ripple’s legal victory at the United States Securities and Exchange Commission.
On the heels of Ripple’s legal victory, XRP surged above the $0.80 mark, an unprecedented level since April 2022. However, this happiness was short-lived. The euphoria evaporated as XRP’s price dropped, wiping out its gains and sending it back into bearish territory. The sudden reversal has raised questions about the sustainability of the crypto’s upward trajectory.
Investors, who were once full of hope, are now wondering about the future of this promising token.
XRP Market Insights Paint a Grim Picture
Popular crypto trader Benjamin Cowen told on x That “XRP has reversed all steps taken following the SEC vs. Ripple case.” This statement echoes market sentiment, suggesting that the positive impact of the legal victory on XRP’s price was only temporary.
$XRP The entire move, which came after the SEC vs. Ripple case, has been reversed.
Stories don’t drive the market, liquidity does. pic.twitter.com/8295jFRdHB
– Benjamin Cowen (@intocryptovers) 11 September 2023
As of now, the price of XRP is at $0.480443, up a modest 2.0% over the past 24 hours, according to CoinGecko. However, a more worrying statistic is the seven-day decline, which is almost 5%. This decline reflects the current bearish sentiment around the digital asset.
Since the beginning of August, the 1-day chart of XRP has displayed a bearish market trend and a decline. Since bulls failed to break last week’s $0.5 resistance, a visit to that level again could be a good opportunity for short sellers.
evidence of selling pressure
A closer look at XRP’s on-chain metrics shows that selling pressure is evident. On-Balance Volume (OBV), an indicator that tracks buying and selling volume, has been in a declining trend along with the price over the past month.
XRP market cap currently stands at $25 billion. Chart: tradingview.com
This shows that sellers have been dominant in the market, while buyers have struggled to make an impact, especially in the higher time frames. This scenario confirms the bearish grip on XRP.
Another metric worth noting is the average coin age, which measures the average age of coins being transacted on the network. The metric experienced steep drops on August 30 and September 1, but has since started climbing.
While this may indicate network-wide accumulation, it does not guarantee an immediate uptrend. Investors should remain alert and attentive in the face of uncertain market conditions.
XRP’s recent price action has cast a shadow over the crypto’s prospects. Despite the initial euphoria over Ripple’s legal victory, bears have regained control, sending XRP’s value downwards. With key metrics showing selling pressure and uncertainty in the market, the future of XRP remains uncertain, leaving investors considering their next steps in this volatile landscape.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from The Change Management Blog