- XRP witnessed a massive decline in price over the last few days.
- Traders turned bearish, and new addresses lost interest.
Ripple [XRP] witnessed yet another decline in price over the last 24 hours, raising questions about its future prospects within the cryptocurrency market.
Price takes a hit
According to CoinMarketCap’s data, the price of XRP dropped by 9.34%. This decline added to the ongoing downward trend that XRP has been experiencing since the 11th of March.
Following a test of the $0.7440 level, XRP’s price has continued on a downward trajectory, characterized by multiple lower lows and lower highs, firmly establishing a bearish trend.
The price of XRP would need large amounts of bullish momentum to reverse this trend.
Furthermore, indicators such as the Chaikin Money Flow (CMF) and On-Balance Volume (OBV) painted a bleak picture for XRP’s price movement.
The CMF, a measure of buying and selling pressure, registered at 0.00, indicating a lack of significant buying interest.
Additionally, the OBV, which tracks volume flow to gauge market sentiment, has also fallen during this period, further signaling a lack of bullish momentum.
If things don’t change for XRP soon, the price could further decline.
Source: Trading View
Looking at the data
In addition to price indicators, on-chain metrics for XRP reflect diminishing interest from new participants. AMBCrypto’s analysis of Santiment’s data revealed that there was a decline in network growth for XRP.
The decline in network growth suggested that new addresses were losing interest in XRP. If addresses choose to not buy XRP at these discounted prices, the chances for XRP’s reveal can turn even more bleak.
Moreover, the exchange flow balance for XRP also turned negative, which indicated a net outflow of XRP from various exchanges.
Source: Santiment
Trader sentiment surrounding XRP had also taken a bearish turn, with short positions against XRP surging to 51.8%.
This suggested a prevailing pessimistic outlook among traders, which could further exacerbate downward pressure on XRP’s price.
Source: Coinglass
Read Ripple’s [XRP] Price Prediction 2024-25
Moreover, Development Activity for XRP declined, reflecting a potential lack of innovation and progress within the ecosystem.
New developments help in improving sentiment around a network and a token. This slowdown in development could further dampen investor confidence in XRP’s long-term prospects.
Source: Santiment