Will XRP Price Retrace to $0.55? Here’s What the Data Says
The post Will XRP Price Retrace to $0.55? Here’s What the Data Says appeared on BitcoinEthereumNews.com.
Ripple’s (XRP) price is showing signs of a potential retracement. Despite recent bullish momentum, weakening market signals suggest that the altcoin may struggle to maintain its upward trajectory in the short term. This analysis examines the cooling sentiment around XRP, the factors driving this shift, and what investors can expect as the asset faces a possible price correction. Ripple Flashes Sell Signal According to Santiment data, XRP’s price Daily Active Addresses (DAA) divergence dropped to -74.46% today. The price DAA shows if user participation on a blockchain is increasing with the price or otherwise. When the indicator increases and is positive, network activity rises, which could serve as a buy signal. On the other hand, a declining price-DAA is a sell signal because it indicates a drop in user engagement. If this is the case while the price increases, it means the uptrend is weak. Considering XRP’s current condition, the price could decrease if it remains the same. Read more: 10 Best Altcoin Exchanges In 2024 Ripple Price DAA Divergence. Source: Santiment The Money Flow Index (MFI) is another indicator suggesting a potential drop. The MFI helps investors assess the flow of money in and out of a cryptocurrency. When the Money Flow Index increases, it shows that more money is flowing into the asset, signaling increased buying pressure. Conversely, a decrease in the MFI indicates an outflow of liquidity, reflecting selling pressure. At press time, the MFI has fallen from 81.54 to 65.54, reinforcing the signal reflected by the price-DAA divergence. XRP Money Flow Index. Source: TradingView XRP Price Prediction: Correction Season On the daily chart, BeInCrypto observed that the $0.60 region is a major supply region for XRP. As a result, the token has faced resistance in that area on several occasions. Currently, XRP’s price appears to be inching toward that…
Filed under: News - @ September 26, 2024 8:18 pm