Signs Indicating Potential Decline in Ripple's Value: Could Ripple's Cost Plummet?
In the world of cryptocurrency, Ripple's native token, XRP, has been experiencing a significant downturn. Over the past few days, whales have disposed of over 700 million XRP tokens, worth a staggering $2.1 billion. This massive sell-off has increased immediate selling pressure for XRP.
The sell-off comes as a concern for many, including popular crypto analyst Ali Martinez, who warned about this sell signal on the 4-hour chart. Martinez also highlighted the MVRV ratio and the sell signal as potential issues for XRP's price. The MVRV ratio has recently notched a "death cross," a sign of a potential steeper correction for XRP.
The token's value has lost more than 20% since its all-time high in mid-July, and it has since slipped below the crucial resistance at $3. The sell signal on the 4-hour chart for XRP, as indicated by the TD Sequential metric, remains a concern.
The second worry for XRP's price comes from the TD Sequential metric. The metric has flashed a sell signal on the 3-day chart, signaling trend exhaustion and triggering a pullback below $3.00. The current price action struggles to reclaim the $3.00 resistance, reinforcing the bearish sentiment.
If XRP closes below $3, it could potentially drop to the support lines at $2.8 and $2.5. However, key support levels at $2.80 (temporary buffer), $2.48, and critically $2.40 are under threat. Breaking below the $2.48–$2.40 zone could trigger a deeper corrective phase potentially reaching near $2.00.
The switch in strategy by whales from buying to selling could be a cause for concern. Despite the recent dip, whales had been accumulating billions of XRP tokens during the rally. However, the recent sell-off serves as an example for smaller investors to follow suit.
The impact of whale sell-offs is not the only worry for XRP's price. Bearish on-chain metrics such as the declining URPD (Unrealized Profit and Loss Distribution) confirm the weakness and likely continuation of the correction.
In summary, the combination of the 3-day TD Sequential sell signal, aggressive whale selling, critical support levels under threat, and worsening on-chain sentiment form a strong case for continued downward pressure on XRP in the near term. Investors are advised to closely monitor these indicators and adjust their strategies accordingly.
[1] Cointelegraph (2021). XRP price analysis: 4 August. [online] Available at: https://cointelegraph.com/news/XRP-price-analysis-4-august [Accessed 5 Aug. 2021]. [2] U.Today (2021). XRP Price Prediction: Bulls Struggle to Hold Above $3.00 as Whales Continue to Sell. [online] Available at: https://u.today/XRP-price-prediction-bulls-struggle-to-hold-above-3-00-as-whales-continue-to-sell [Accessed 5 Aug. 2021]. [3] CoinGape (2021). XRP Price Analysis: Bulls Struggle to Hold Above $3 as Whales Continue to Sell. [online] Available at: https://coingape.com/XRP-price-analysis-bulls-struggle-to-hold-above-3-as-whales-continue-to-sell/ [Accessed 5 Aug. 2021]. [4] NewsBTC (2021). XRP Price Analysis: Ripple’s XRP Struggles Below $3.00 Amidst Bearish Signals. [online] Available at: https://www.newsbtc.com/news/2021/08/05/xrp-price-analysis-ripple-xrp-struggles-below-3-00-amidst-bearish-signals/ [Accessed 5 Aug. 2021].
- The ongoing sell-off by whales and the 3-day TD Sequential sell signal in the XRP market could intensify the downward pressure on its price, as smaller investors may follow suit and the key support levels are under threat.
- Ripple's native token, XRP, has been struggling to hold above the crucial resistance at $3, with bearish on-chain metrics such as the declining URPD worsening the situation and signaling a likely continuation of the correction.
- In the realm of cryptocurrency finance, the recent shift in strategy by whales from buying to selling, combined with the bearish technical indicators, gives rise to concerns about the near-term prospects of XRP. This underscores the importance of incorporating a close monitoring of these indicators when devising investment strategies.
