XRP, the digital asset connected to Ripple, is losing bullish momentum after a big change in how investors act. Crypto Times recently reported that the cryptocurrency is in danger of falling toward the $2 mark. Technical indicators and data on exchange inflows suggest that a bearish reversal may be happening. This turning point comes after a long time of money coming in that helped prices go up.
Inflows to exchanges could mean a possible sell-off
On-chain analytics reveal a significant increase in the transfer of XRP tokens being sent to centralized exchanges. This scenario scenario often happens before people start taking profits, especially when the asset can’t hold key support levels. The sudden stop in net inflows, which had previously shown accumulation, now suggests a possible shift toward distribution.
XRP’s net inflows fell from $110 million to less than $30 million in the last week, which shows that investors are becoming less interested. This change has happened at the same time as a drop in daily trading volumes and an increase in whale wallet activity. If XRP falls below its current support level of $2.15, analysts say it could test lower levels between $1.90 and $2.00 soon.
On the other hand, other altcoins like Ethereum and Solana are still seeing strong exchange These findings metrics. These findings could mean that XRP’s drop is due to its assets rather than a trend in the market as a whole. This analysis of XRP’s dominance outlook can give you an idea of how altcoins might do in the long run.
Technical indicators show that things are getting worse
The Relative Strength Index (RSI) on XRP’s daily chart has now shown a bearish divergence, with the oscillator falling below 50. The Moving Average Convergence Divergence (MACD) also shows a bearish crossover, which makes it more likely that prices will go down even more. Key resistance is at $2.35, and XRP may have a hard time gaining upward momentum again unless strong buying support comes back.
Also, derivatives data show that open interest in XRP futures is going down, which means that people are less interested in making leveraged bets. This makes the bearish case stronger and shows that institutional traders are risk-averse.
a crucially important point right now. If it doesn’t hold key support levels, the pressure on the downside could get worse. The overall crypto market is still pretty stable, but XRP’s metrics show that investors are being careful. To get back to a bullish mood, the asset needs to see positive net inflows come back, whales start buying more, and the technical position gets better.
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