- The latest transaction suggested that XRP’s upswing may stop.
- However, technical analysis showed that direction is not yet clear.
On the 17th of June, blockchain analytics system Whale Alert posted that 30 million Ripple [XRP] tokens left an unknown wallet. Moments later, on-chain data confirmed that the tokens arrived on Bitstamp.
Bitstamp is one of the longest-serving exchanges. Typically, a rise in the number of tokens sent to exchanges is not always great for the price. This is because most market participants prefer to hold assets off these platforms unless they plan to sell.
Source: X
XRP faces a lengthy consolidation period
Therefore, the recent transaction suggests that XRP could be in line for a price decrease. At press time, the price of XRP was $0.51.
Interestingly, the token was the only cryptocurrency with a positive 24-hour performance out of the top 10. According to CoinMarketCap, the price was a 3.97% increase from the previous days.
But do metrics support the notion that XRP would erase the gains? Let’s check.
To start with, AMBCrypto analyzed the Network Growth. This metric measures the number of new addresses interacting with a blockchain. In more specific terms, an address is considered a new one if it completes its first successful transaction on the network.
For context, an increase in Network Growth suggest an improvement in traction. However, a decline implies that adoption of the project, as well as demand for the token is discouraging.
At press time, the Network Growth on the XRP Ledger had decreased. Furthermore, this low demand could halt XRP’s uptrend, and a decrease below $0.50 could be next for the token.
Apart from the decline in adoption, the Realized Cap also indicated a possible fall in price. Realized Cap is the sum of realized profit and realized losses.
In a bull market, the Realized Cap reach elevated levels as the price increases. However, a decrease in the. metric means a lot of tokens are changing hands.
Historically, this movement is accompanied by a long period of consolidation. Since the Realized Cap dropped on the XRP Ledger, there is a chance that the token would struggle to continue its uptrend.
Source: Santiment
Will the price slide to $0.49?
Instead, the price may swing sideways in the short term. Per actual targets, XRP might trade between $0.49 and $0.51.
From a technical perspective, AMBCrypto observed that the longer EMA and the shorter EMA were at the same spot. This position implied that the token’s price could consolidate.
Read Ripple’s [XRP] Price Prediction 2024-2025
However, the Accumulation/Distribution (A/D) line was rising, indicating buying pressure for XRP. If buying pressure increases, XRP’s price might defy the bearish prediction and key into the resistance at $0.53.
However, if accumulation slows down, the next movement for the cryptocurrency could be a decline to the underlying $0.49 support.
Source: TradingView