- XRP has fallen by more than 4% over the past seven days.
- Some metrics and indicators suggested the possibility of a trend reversal.
Altcoins experience price increases, allowing several of them to increase their market capitalization. However, while the prices of some alts soared, XRP acted differently.
To see what’s going on, AMBCrypto checked the state of the token to understand whether the negative price movement will affect the altcoins’ bull rally.
The performance of XRP is not comparable
A popular crypto analyst recently posted a tweet on X highlighting an interesting development. According to the tweet, altcoins have broken out of a falling wedge that has existed for more than two years. When prices break out of a falling wedge, it typically signals a bull rally.
Altcoins have broken out of a Falling Wedge that has existed for over 2 YEARS.🔥
What is happening now is called bullish consolidation.
The first real goal is 70% higher from here.
Be patient. pic.twitter.com/lco6aY0Zqu
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) February 2, 2024
AMBCrypto’s analysis of crypto prices revealed that the pattern was tested as several altcoins posted price gains.
Ethereum [ETH] up 2.5% last week. Besides the king of altcoins, Solana [SOL] And Cardano [ADA] also registered more than 8% and 7% weekly gains respectively.
Meanwhile, XRP bears still maintained the token’s price. According to CoinMarketCapXRP is down more than 4% over the past seven days.
At the time of writing, the token was trading at $0.5069 with a market cap of over $27.5 billion, making it the sixth largest crypto.
After peaking on January 31, the token’s social volume plummeted, indicating that not many people were talking about the token.
In addition, network activity also decreased. AMBCrypto’s look at Santiment’s data pointed to this XRP‘s daily active addresses dropped last week.
Network growth also declined, meaning fewer new addresses were created to transfer the token.
Source: Santiment
Here’s the good news
Nevertheless, there was good news as the chance of the token recovering seemed possible.
Crypto Michael, another crypto analyst, posted a tweet stating that he expected XRP to recover quickly. The tweet stated that the price of XRP was moving in a bearish wedge pattern, and if the price breaks out, it could start a bull rally.
I expect $XRP to bounce quickly 📈 pic.twitter.com/QBwLoJ8wdi
— Crypto Michael (@MichaelXBT) February 2, 2024
To better understand the feasibility of this outcome, we checked the statistics of XRP. We found that despite the price drop, XRP’s MVRV ratio recovered.
Another optimistic metric was the token’s high number of whale transactions, indicating that the major players were actively trading the token.
Source: Santiment
How many Worth 1,10,100 XRPs today
XRP’s MACD showed a clear bullish upper hand on the market. Moreover, the token’s Chaikin Money Flow (CMF) also recorded a sharp increase, suggesting the possibility of a trend reversal.
Taking into account all the above statistics and indicators, or XRP actually manages to paint its map green, just as other altcoins will be interesting to keep an eye on.
Source: TradingView