- XRP has fallen more than 4% over the past seven days.
- Most market indicators remained bearish for the token.
Like most cryptocurrencies XRP Recently, they faced difficulties due to a failed price increase. The recent price correction has brought XRP down to a critical support level.
This allowed the token to show strength to change the trend. However, things can get even worse if the token fails the support tests.
XRP bears are leading.
CoinMarketCap’s data The value of XRP has fallen by more than 4% over the past seven days. In the last 24 hours alone, the price has fallen by more than 2%.
At the time of writing, the token is trading at $0.4754, with a market capitalization of over $26 billion, making it the 7th largest cryptocurrency.
AMBCrypto’s analysis of the token’s daily chart revealed a descending triangle pattern.
In fact, the token was testing a critical support area that gave XRP an opportunity for a bounce. However, if the support test fails, investors could witness further price declines in the coming days.
Source: TradingView
What to expect?
Since there was uncertainty about XRP going forward, AMBCrypto planned to look at the token’s on-chain data.
Analysis of data from Santiment shows that buying pressure for XRP is increasing. This was evident from the surge in exchange outflows last week.
Additionally, supply on exchanges is also decreasing, meaning investors are buying the tokens..
The token’s weight sentiment also improved after the significant drop. A rising indicator means that investors are confident in XRP and that bullish sentiment towards the token is increasing.
Source: Santiment
The token’s CMF (Chaikin Money Flow) also showed an optimistic trend, recording an upward trend. However, the rest of the indicators were bearish, suggesting that XRP could fall sharply if it finds support.
Both the relative strength index (RSI) and the money flow index (MFI) recorded declines. MACD also dismissed the idea that bulls and bears were competing for dominance.
Source: TradingView
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We then checked out data from Hyblock Capital to find out what’s next for XRP this week. Our analysis shows that the downtrend continues to dominate.
Investors could then see the token fall to $0.445 this week. However, if the bulls intervene and initiate a trend reversal, the token may even recover $0.5 as liquidation increases at that level.
Source: Hiblock Capital