Over the past few days, XRP, the native token of Ripple Labs, has been facing challenges in gaining momentum, and data suggests that this struggle is likely to persist in the near future. This negative sentiment is driven by recent investor activity and the behavior of long-term holders amidst ongoing market uncertainty.
Bearish On-Chain MetricsÂ
Recent data from the on-chain analytics firm Coinglass indicates a significant inflow of $62 million worth of XRP tokens onto exchanges in the past 48 hours. This influx suggests a potential sell-off, which could lead to a decrease in price and heightened selling pressure.
Furthermore, the current long/short ratio, a measure of trader sentiment, sits at 0.92, indicating a bearish sentiment with short positions dominating the market.
This activity is occurring amidst a period of price consolidation for XRP over the past six days.
XRP Technical Analysis and Price PredictionÂ
Expert technical analysis suggests that XRP remains neutral until it breaks out of the consolidation range between $2.90 and $3.30.
Based on recent price trends, a breakout above $3.32 could lead to a potential 32% increase to reach $4.50, while a breakdown below $2.85 may result in a 10% decline to $2.58 in the future.
Additionally, the Relative Strength Index (RSI) currently stands at 65, indicating that XRP is nearing overbought levels but still has room for further upward movement.
Current Price MomentumÂ
Despite the bearish sentiment, XRP is trading around $3.25 with a 1.60% increase in the past 24 hours. However, trading volume has decreased by 35%, suggesting lower participation from traders and investors compared to the previous day.
