- XRP has fallen by more than 4% over the past seven days.
- Most market indicators remained bearish on the token.
Like most cryptos, XRP also faced problems recently as it failed to raise its price. The latest price correction has pushed XRP to a critical support level.
This allowed the token to make a bullish move to change the trend. However, if the token fails to test support, things could get worse.
XRP bears are leading
CoinMarketCaps facts revealed that the value of XRP has fallen by more than 4% in the past seven days. In the last 24 hours alone, the price fell by more than 2%.
At the time of writing, the token was trading at $0.4754 with a market cap of over $26 billion, making it the seventh largest crypto.
AMBCrypto’s analysis of the token’s daily chart revealed that a descending triangle pattern appeared.
In fact, the token was testing its crucial support zone, giving XRP a chance to recover. But if it fails to test the support, investors could witness a further price decline in the coming days.
Source: TradingView
What to expect?
With uncertainty surrounding XRP in the coming days, AMBCrypto planned to take a look at the token’s on-chain data.
Our analysis of Santiment data showed that buying pressure on XRP was increasing. This was evident from the spikes in currency outflows last week.
Moreover, the supply on the exchanges also decreased, which meant that investors bought the token.
After a huge dip, the token’s weighted sentiment also improved. An increase in the metric means that investors had confidence in XRP and bullish sentiment around the token increased.
Source: Santiment
The token’s Chaikin Money Flow (CMF) also looked bullish as it registered an uptick. However, the rest of the indicators looked bearish, suggesting that XRP could plummet below its support.
Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) registered a decline. Furthermore, the MACD dispelled the idea that the bulls and bears were in a battle to gain an advantage over each other.
Source: TradingView
Is your portfolio green? look at the XRP Profit Calculator
We then checked Hyblock Capital’s data to look for upcoming targets for XRP this week. According to our analysis, the bears continue to dominate.
Then, investors could see the token drop to $0.445 this week. However, if the bulls step in and trigger a trend reversal, the token might as well reclaim $0.5 as liquidation would rise at that level.
Source: Hyblock Capital