Journalist
Posted:
- SOL has replaced XRP as the fifth largest cryptocurrency.
- Demand for XRP has decreased in recent days.
Ripple’s XRP lost its reign as the fifth-largest cryptocurrency by market cap during the December 20 trading session, succumbing to a surge in Solana’s native token SOL.
According to data from CoinMarketCapSOL’s market cap rose above $35 billion, growing 12% in the last twelve hours. At the time of writing, the altcoin’s market capitalization was $36.24 billion, the highest since April 2022.
XRP was left with a market cap of $33.28 billion. On September 12, the price started a decline and has since fallen by 8%.
XRP’s demand craters
While other leading assets have seen significant price growth over the past month, XRP has only risen 1% in value. At the time of writing, the altcoin was exchanging hands at $0.61.
Source: CoinGecko
The price performance observed on a daily chart revealed that XRP initiated a new bear cycle on December 12. On that day, the MACD line (blue) crossed below the trend line (yellow)
When such a crossroads occurs, a bearish shift occurs. Many traders view this crossover as a potential sell signal, and it is often followed by a decline in an asset’s price.
At the time of writing, the MACD line was below the zero line at -0.0021. This showed that the short-term price trend of XRP was less bullish than the longer-term trend, confirming that the price decline would continue until sentiment improves.
Moreso, the coin’s Directional Movement Index (DMI) showed that the bears were in control of XRP’s daily market at the time of writing. Their re-emergence coincided with the downward intersection of the trendline on the MACD on December 12.
The positive directional index (green) of the DMI fell below the negative directional index (red) on the same day. This intersection suggested increased downward pressure on the price of XRP as traders favored token distribution.
At the time of writing, XRP’s negative directional index was 21.51, while its positive directional index was 17.24.
Furthermore, the coin’s key momentum indicators have shown a decline in demand for XPR since the bear takeover occurred.
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The token’s Relative Strength Index (RSI) was poised to break the midline at the time of writing and was 50.43. On the other hand, the Money Flow Index (MFI) was recorded at 47.59.
At these values, these indicators suggested that XRP traders have refrained from any significant token accumulation and sold more of their holdings.
Source: XRP/USDT on TradingView