XRP was down by 2% in the last 24 hours, and liquidation remained high.
Metrics looked bearish, but a few market indicators remained in the token’s favor.
Ripple [XRP] has been witnessing multiple price corrections of late, as both its daily and weekly charts were painted red. If the latest data is to be considered, the token’s price might plummet to a key support level before it starts to move up again.
To better understand the scenario, AMBCrypto took a closer look at the token’s state.
XRP has a few concerns
Over the last seven days, XRP’s price has dropped by more than 3%. In fact, as per CoinMarketCap, XRP’s value sank by over 2% in the last 24 hours alone.
At the time of writing, it was trading at $0.6066 with a market capitalization of over $32.67 billion.
While the token’s price plummeted, its volume increased, legitimizing the downtrend. However, the token’s price may plummet further, as pointed out by crypto analyst Ali via X (formerly Twitter).
— Ali (@ali_charts) December 17, 2023
Ali noted that XRP was moving inside an ascending parallel channel. If the pattern is to be considered, the token might sink to $0.55 before it rebounds from that level.
AMBCrypto then had a look at XRP’s liquidation levels to understand at what points the token witnessed sell-offs. As per our analysis, XRP’s liquidation increased substantially near the $0.644 mark, after which its price started to wane.
Another mild liquidation happened at $0.624.
However, the good news was that the token also has a major support level of $0.59. If it manages to test that level, then XRP might not fall to $0.55.
It was interesting to note that while the token’s price plummeted, negative sentiment around the token increased, as evident from the dip in its Weighted Sentiment.
Nonetheless, its Social Dominance remained high throughout the week, clearly reflecting its popularity in the crypto space.
Possibilities of XRP moving further down
AMBCrypto’s look at Santiment’s data revealed that XRP’s MVRV ratio plummeted last week. Its Network Growth also devolved, meaning fewer new addresses were being created to transfer the token at press time.
At the same time, XRP’s Binance Funding Rate remained green while its price plummeted. This suggested that derivatives investors were actively buying the token at its lower price, increasing the chances of a further downtrend.
Read Ripple’s [XRP] Price Prediction 2023-24
Regardless, AMBCrypto’s analysis of XRP’s daily chart pointed out a few positive indicators. Notably, its Bollinger Bands indicated that XRP’s price had entered a less volatile zone, showing minimal chances of a major price plummet.
Its Money Flow Index (MFI) also registered a slight uptick, which displayed the possibility of an oncoming trend reversal.