XRP forecast: Technical indicators show falling demand
XRP forecast: Technical indicators show falling demand
Ripple has made four large transfers to Bitstamp this month. Since October 2, the transfers have totaled 120.84 million XRP ($58.3 million).
Ripple has been moving tokens in a similar fashion for the past few years. These tokens are mostly XRP issued in escrow. However, the company does not sell all of the XRP tokens it issues each month. Instead, the company blocks about 800 million each month. In this way, the company aims to support the price of XRP.
After another court ruling in favor of Ripple on October 3, the price of XRP rose to $0.549. After that, XRP experienced a significant price drop. A flurry of sales caused XRP's rise to drop to almost zero. As a result, the currency was down 2.68% by mid-October.
Amid the general decline of the crypto market, XRP fell from a high of $0.52 to a low of $0.4829. Despite the gains, the asset has continued to fall.
XRP is currently trading at $0.475472, down 2.2% from yesterday's performance.
The asset's drop below the 50-day and 200-day moving averages forms a bearish outlook for the XRP/USD pair.
Analysts see this decline as a confirmation of the market's cyclicality. Technical indicators are also pointing to pressure on the asset, with the Relative Strength Index (RSI) at 28.21 indicating a drop in buying demand and suggesting that the market may be oversold. A drop below 20 on the RSI would indicate further bearish potential.
The Moving Average Convergence/Divergence (MACD) indicator shows a negative value of -0.0084, indicating a bearish trend. If the MACD line continues to fall into negative territory, it could signal an intensification of the bearish momentum and likely further market decline.
Read also: European regulator assesses the risks of the crypto market and DeFi.
