when

Daily

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/ripple-sees-prolonged-price-drop" data-wpel-link="internal" rel="noopener noreferrer nofollow">Ripple Sees Prolonged Price Drop</a><br></p>
<p style="text-align: justify">Ripple (<a href="https://en.bitcoinhaber.net/ripples-remarkable-rally-predictions-for-a-stellar-surge" data-wpel-link="internal" rel="noopener noreferrer nofollow">XRP</a>) recently closed below its 20-day exponential moving average (EMA) for the fourth consecutive day on May 31. This development continues a seven-day price decline and indicates a potential bearish trend. Investors interpret a token trading below its significant moving average as a sign that the market trend is shifting towards selling, as it reflects the current price falling below the average price of the last 20 days.</p>
<h2 id="technical-indicators-signal-weakness">Technical Indicators Signal Weakness</h2>
<p style="text-align: justify">An evaluation of key technical indicators for XRP supports the likelihood of further value loss in the coming days. For instance, XRP’s relative strength index (RSI) was recorded at 46.64, and its money flow index (MFI) stood at 40.96. These values, which sit below their neutral points, imply diminished demand for XRP as market participants opt to distribute existing assets rather than purchase new tokens. This trend was corroborated by a 30% drop in daily active addresses on the chain over the past month, according to <a href="https://newslinker.co/category/ai/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data</a> from Santiment.</p>
<p style="text-align: justify">The dip in active addresses signifies increased selling pressure on XRP, signaling a bearish outlook. Notably, the decrease in new addresses created for altcoin transactions mirrored this trend, falling by 29% over the same period. Such reductions in active and new addresses often hint at potential price drops for the token.</p>
<h2 id="daily-transactions-in-xrp">Daily Transactions in XRP</h2>
<p style="text-align: justify">Despite the decline in demand and price, daily traders of XRP still managed to record profits. The daily trading volume indicated a profit/loss ratio value of 1.16, suggesting that for every loss-making transaction, there were 1.16 profitable transactions. For <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> considering trading against the market, XRP’s negative market value/realized value (MVRV) ratio provided a buy signal. According to Santiment’s data, XRP’s MVRV ratios for the 30-day and 365-day moving averages were -0.7% and -8.5%, respectively.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<ul>
 <li>XRP closed below its 20-day EMA, indicating a bearish trend.</li>
 <li>Key momentum indicators (RSI and MFI) are below neutral points, suggesting reduced demand.</li>
 <li>Daily active addresses on the XRP chain decreased by 30%, and new addresses fell by 29% over the past month.</li>
 <li>Despite declining prices, daily traders recorded a profit/loss ratio of 1.16.</li>
 <li>XRP’s MVRV ratio signals potential buy opportunities for market-contrarians.</li>
</ul>
<p style="text-align: justify">In summary, the technical indicators and market activity point towards a bearish outlook for Ripple (XRP) in the near term. Investors should consider these metrics when making trading decisions, as they provide critical insights into the token’s market dynamics.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/ripple-sees-prolonged-price-drop" data-wpel-link="internal" rel="noopener noreferrer nofollow">Ripple Sees Prolonged Price Drop</a></h5>

Ripple Sees Prolonged Price Drop

Table of Contents

BH NEWS

Other articles published on Jun 2, 2024

Bitcoin Price Dips to $67,500

Bitget Wallet Token (BWB) makes debut on the Bitget Launchpad

Ethena’s USDe Stablecoin Skyrockets to $3B Supply in Just 4 Months

Linea Resumes After Hack on Velocore DEX Drains $10M

Ethena Labs Hits $3 Billion Supply

Bitcoin (BTC) Price May Soar To $79,600 If This Condition Is Met

Join our free newsletter for daily crypto updates!