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XRP Risks Falling Below $3 Again as Exchange Reserves Surge by 1.2B in a Day

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Ripple-backed XRP has been on a bullish rally lately with the price soaring by over 5% over the last 7 days and over 1% on the day. While now above $3.0, on-chain metrics paint a grim picture for XRP. The number of tokens in exchanges has spiked significantly over the last 24 hours, a potential signal for impending price downturn. 

Technical indicators on the 4-hour chart also add to the grim picture. The RSI and MACD of XRP point to an incoming dip, which could see the coin dipping below $3 yet again. 

Investors Move 1.2B XRP into Exchanges Over the Last 24 Hours

Over the last 24 hours, investors have moved a total of 1.2 billion XRP tokens into exchanges. Normally, a surge in exchange reserves is interpreted to mean preparation for incoming price volatility. With an inflow of such a significant amount of XRP into exchanges, investors might thus be getting ready to sell in case the price starts to dip. 

As observed by crypto market watcher Mario Nawfal, Binance has seen a large chunk of the XRP inflow into exchanges. The exchange, ranked as the number crypto exchange in the world, saw a total of +610 XRP inflows. This accounts for more than half of the total exchange inflows as investors get ready to sell. 

With a surge in exchange inflows for a coin normally associated with a potential price drop, the XRP community is all eyes on what happens next. For instance, one X user “Hercules” has offered a two-instance scenario that may play out. He wrote;

Massive $XRP inflows signal potential whale moves or prep for major market action eyes on Binance.

In case of even a slight dip in the price of XRP, retail investors could bail out of the coin by liquidating their holdings. Such a scenario would further stir further price dip for XRP. 

Technical Indicators Show Momentum Slowdown

XRP’s 4-hour chart shows that the coin is currently trading at $3.00. While up by 1.20% on the day, the price has shown some signs of weakness. This weakness is amplified by negative technical indicators. 

The Relative Strength Index (RSI) of Ripple, for instance, sits at 60.53. While the RSI is still bullish there is a clear sign of incoming dip as the RSI sits just slightly above the moving average. A dip towards 50 (neutral mark) could signify consolidation for XRP. 

XRP Price | RSI & MACD | Source: TradingView

Besides the RSI, XRP’s Moving Average Convergence Divergence (MACD) also paints a slowdown in the price momentum. In fact, the MACD formed a bearish crossover earlier in the day with the MACD line sitting at 0.0322 below the signal line at 0.0333. The histogram of XRP is also red with the bars seemingly increasing in size, an indicator for further drop in momentum. 

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