Plunge

Flow

Convergence

Divergence

The post <a href="https://coinpedia.org/news/xrp-price-to-plunge-hard-as-ripple-supply-on-exchange-drop-sharply/">Is XRP Headed for a Deeper Crash? Demand Slumps as Market Turns Bearish</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
Ripple Labs recently emerged victorious in its legal battle against the <a href="https://coinpedia.org/news/ripple-vs-sec-settlement-talks-spark-speculation-amid-ongoing-legal-battle/" target="_blank" rel="noreferrer noopener">Securities and Exchange Commission (SEC)</a>, yet this win has not translated into the expected surge in the price of XRP. Despite the favorable ruling, XRP continues to struggle, with its price plummeting to $0.4734, an 11.67% decline this month amidst the ongoing market crisis. 
Even before this drop, <a href="https://coinpedia.org/news/xrp-price-will-bulls-push-the-price-beyond-120-next-bullish-cycle/" target="_blank" rel="noreferrer noopener">XRP wasn’t performing</a> well, and now the situation has worsened. The XRP supply has hit its lowest point in months, and the price continues to fall. 
<h2 class="wp-block-heading" id="h-supply-at-historic-lows">Supply at Historic Lows </h2> 
The supply of XRP on exchanges has dropped to 2.84 million, valued at $1.34 million at current market prices, the lowest level since January 1. This decline suggests that fewer XRP tokens are being held on cryptocurrency exchanges, indicating a shift in investor behavior. 
Where Have All the Tokens Gone? 
Several factors could explain this trend. Investors might be <a href="https://coinpedia.org/news/xrp-army-finds-ripples-intent-to-retain-most-xrp-for-development-efforts/" target="_blank" rel="noreferrer noopener">transferring their tokens</a> to hardware wallets for enhanced security, staking them on decentralized finance (DeFi) platforms, or simply holding onto them in anticipation of a future price increase. 
Over the past 11 days, XRP investors have faced substantial losses, totaling more than $30 million. This downturn is attributed to widespread token distribution amid a market crunch, highlighting a troubling trend of market capitulation. 
<h2 class="wp-block-heading" id="h-xrp-price-analysis-nbsp">XRP Price Analysis&nbsp;</h2> 
XRP’s daily price performance points to a diminishing demand for the altcoin. The Chaikin Money Flow (CMF), which monitors money entering and leaving the market, currently stands at 0.06. A negative CMF signals market weakness, suggesting that capital is exiting the market, a harbinger of potential further declines. 
The Moving Average Convergence Divergence (MACD) for XRP also indicates a bearish trend. The MACD line (blue) is below both the signal line (orange) and the zero line, reinforcing the prevailing negative sentiment. 
Despite these indicators, there are no signs of a strong rebound for XRP in the near future. Currently, <a href="https://markets.coinpedia.org/xrp/" target="_blank" rel="noreferrer noopener">XRP is trading at $0.47</a>, reflecting a 0.8% drop in the last 24 hours. As the market grapples with these challenges, the outlook for XRP remains uncertain. 
Read Also: <a href="https://coinpedia.org/news/ethereum-vs-layer-2-tokens-which-is-the-better-crypto-investment/">Ethereum vs. Layer 2 Tokens: Which is the Better Crypto Investment?</a> 
Despite the current market conditions, XRP still holds potential. Stay tuned for updates on Ripple’s progress and future developments!

Is XRP Headed for a Deeper Crash? Demand Slumps as Market Turns Bearish

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