Over the past week, XRP has been in a downward trend due to lack of demand. At the time this article was written, the coin had retouched its multi-month high. Broader market weakness also remains to be blamed along with a whirlwind of regulatory roadblocks owing to SEC vs Ripple’s lawsuit.
Overall it hasn’t been a very favourable time for the altcoin. CoinMarketCap reports that XRP market capitalization has declined by 7% over 24 hours. At the time of writing, the market capitalisation for the coin stood at $29.13 billion.
Global crypto market cap stood at $1.85 Trillion, after falling 1.8% in the past day. XRP’s all-time high was $3.84 and at the present market value, XRP has fallen by over 80%.
XRP price analysis: four hour chart
The price of XRP at press time was $0.607, and it experienced an increase in value by $6.7% during the past 24 hours. In the past week, the digital asset’s market value fell by over 17%.
For a week the coin was repeatedly rejected at $0.700. This has led to the bears taking over the market.
Market bulls were driven out and buyers have also been expelled from it. XRP saw a decline with each rejection. The red color corresponds with the coin’s falling market cap.
The coin faced immediate resistance at $0.700, and later at $0.770. The next support level for the coin is $0.59. This was the last time the coin reached this level in February 2022.
Technical Analysis
Overselling and underbuying have been frequent in cryptocurrency over the past week. XRP has seen a steady decline in buying strength over the past week.
The sell-off has caused the prices of the coin to remain below the 20-SMA. As we mentioned, XRP might trade at a higher level if buyers regain confidence. The 50-SMA coincides closely with the resistance of $0.770.
The Relative Strength Index was below the 25 mark, which indicates oversold market conditions at the time the indicator was written.
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Does The On-Chain Analysis Invalidate The Coin’s Bearish Thesis? We don’t think so!
Santiment also reported that the cryptocurrency’s developmental activity has declined. XRP reported an increase of developmental activity during September last year. Last year, the coin reached a peak of 69.
Ever since that, XRP’s developmental activities have severely noted a decline. The coin was at 14 as of the writing date, which shows that XRP is significantly behind in this area.
In terms of social aspects, the cryptocurrency has also suffered. As a result, the chart displayed a lot of bearishness.
Social dominance is a decline in cryptocurrency popularity. It happens most often during bull runs and other favorable times.
Since December 2020, the social dominance has fallen sharply. Current reading is at 1.92%, which represents almost 90% of the decline from December 2020.
With periods of highs or lows as shown on the chart, social volume fell sharply. A choppy social volume indicates a decline in confidence, and this is considered a bearish thesis on XRP.
Although the market seems to be in the accumulation stage, from the above-given metrics, it is safe to assume that the coin itself hasn’t witnessed too much accumulation which directly amounts to a lesser number of buyers entering the market.
In order to cancel a bearish price movement, the coin should experience growth in purchasing strength. Failure to do so XRP could remain stuck at that price action for the future.
Similar Reading: Ripple CEO Optimistic on SEC Case; Why XRP saw Weak Response| Ripple CEO Optimistic On SEC Case, Why XRP Saw Weak Response
UnSplash featured image, Charts from Tradingview.com & Santiment.com