- XRP noted declines in key on-chain metrics.
- This is a time of panic and despair. But there is only one way to profit.
Ripple (XRP) has been mostly in the red since April 12 on the daily price chart. From Friday’s high to Saturday’s low, it fell 32%.
This marked the lowest level in eight months. At the same time, it fell below its monthly low.
A recent AMBCrypto report highlighted Ripple’s declining network growth. This means that user adoption has decreased and demand for XRP has also decreased.
last week’s sell-off
Source: Santiment
Since March 23rd, the average coin age metric has been trending downward. This indicates increased movement of XRP tokens between addresses where they are likely to be sold.
On April 12th, both average coin age and MVRV ratio dropped sharply. This was accompanied by a sharp decline in prices. This showed holders giving up their XRP in fear.
Moreover, even in the dormant coin era, a large surge occurred on this day.
Together they point to strong selling pressure. Additionally, despite MVRV being shown to be an undervalued asset, XRP may be difficult for long-term investors to justify purchasing.
psychology of scope
An anonymous cryptocurrency analyst at One is V-reversal and the price is recovering quickly. Another thing is the continued downward trend.
Both will be clear indications of bullish or bearish pressure. However, if prices form a range and consolidate, it will become more difficult for new entrants to hold onto the asset.
Source: XRP/USDT on TradingView
The yellow one is 1 month old and the purple one is 8 and a half months old. From February to mid-March, Bitcoin (BTC) rose from $41,800 to $73,700 (a 76% move), while XRP rose another 51%.
However, it still hasn’t reached its peak. A subsequent reversal will be difficult for long-term holders.
Being close to the low of the $0.46 range at press time presented an attractive buying opportunity for swing traders.
But the problem still remains. Could XRP surpass other large cryptocurrencies in the coming months? Evidence of price movements over the past nine months indicates this is unlikely.
However, in 2020-21, XRP was stuck below similar resistance at $0.65.
In April 2021, in 15 days, XRP rose 243%, reaching a high of $1.96 (but not ATH). April 2021 marked the first time Bitcoin surpassed $60,000.
Read Ripple (XRP) Price Prediction for 2024-25
Perhaps during this cycle, XRP investors will have to go against all odds and see consistent underperformance until the final, glorious two-week return.
This is speculation, but still something for investors to consider.