- XRP fell to a two-month low on June 7th.
- The value of XRP has fallen following reports that Ripple sold some of its XRP holdings.
The XRP price fell to a two-month low of $0.498 during the June 7 trading session, according to data from Santiment. The last time the altcoin traded at this price level was April 17.
Source: Santiment
The decline was caused by market jitters following reports that Ripple, the token’s developer and largest holder, sold 150 million XRP worth $75 million at the current market price of the day.
With significant selling activity underway as of press time, XRP’s sales volume has increased by 104% in the past 24 hours. This created a bearish differential with the token price, resulting in a 4% price decline during the period.
If an asset’s daily volume is surging while its price is falling, this is a bearish signal. This suggests that more market participants are selling assets.
XRP Ready to Take More Losses
AMBCrypto’s assessment of XRP’s price performance on the 1-day chart shows that the altcoin is poised for further declines in the near term.
The decline in the price of XRP over the past 24 hours has pushed the price below the 20-day exponential moving average (EMA).
An asset’s 20-day EMA tracks its average price over the past 20 days. When the price falls below these key moving averages, it signals a surge in selling pressure, indicating that bulls are losing control of the market.
Confirming the surge in selling pressure, XRP’s key momentum indicators are trending downward and are below their respective 50 neutral lines at press time. For example, XRP’s Relative Strength Index (RSI) was 37.97 and its Money Flow Index (MFI) was 32.29.
At these values, the indicator showed that token traders prefer XRP distribution over accumulation.
Read Ripple (XRP) Price Prediction for 2024-25
In addition, XRP’s Arun downline (blue) was 92.86%. The Aroon indicator for assets identifies price trend strength and potential reversal points. If the Aroon Down line is close to 100, it indicates a strong downtrend and that the most recent lows were reached relatively recently.
Source: XRP/USDT on TradingView
If selling pressure continues to increase, the price of XRP could fall to $0.491. If the bulls fail to support this level, the value of XRP could fall below the $0.49 level and trade at $0.481.
Source: XRP/USDT on TradingView
However, if this prediction is invalidated and the bulls regain market control, the token price could rise to $0.50.