XRP Fights to Surmount $3 Barrier Amidst Bearish Sentiment and Accelerating Outflows
1min read XRP Struggles to Break $3 Barrier as Bearish Sentiment and Outflows Weigh Heavily
XRP, the native cryptocurrency of the Ripple network, has been grappling with significant downward pressure, failing to breach the $3 threshold since reaching its all-time high of $3.41. The altcoin's value has declined by approximately 9% over the past week, with no signs of recovery in the near term. This downward trend is primarily driven by growing bearish sentiment and accelerating outflows from spot markets.
An analysis of the XRP/USD one-day chart reveals a strengthening bearish bias against the altcoin. The Elder-Ray Index, which measures the relationship between buying and selling pressure in a market, has posted a red histogram bar for the first time in 15 days. At press time, the indicator stands at -0.10, suggesting that bearish momentum is dominant and that sellers are in control, exerting downward pressure on the asset's price.
The steady outflows from XRP spot markets further confirm the high selling pressure. According to Coinglass, in the past three days, outflows from XRP spot markets have totaled $96 million. Spot outflows such as this signal declining confidence or profit-taking, often leading to downward pressure on the asset's price.
On the technical side, readings from XRP's Moving Average Convergence Divergence (MACD) indicator confirm this bearish outlook. The altcoin's MACD line (blue) currently rests below its signal line (orange). When this indicator is set up this way, it indicates a bearish trend, with selling activity exceeding accumulation among market participants. If this trend continues, XRP's price could plummet to $2.45.
However, a resurgence in XRP demand could drive it to revisit its all-time high of $3.41. As the cryptocurrency market continues to evolve, investors should keep a close eye on XRP's price action and the broader market dynamics to make informed decisions about their portfolios.
