- XRP trading volume fell 53%, but the market remained undecided.
- XRP’s continued consolidation has analysts optimistic about a rally to $20.
With Bitcoin [BTC] While altcoins have fallen 5.4% over the past seven days to trade at $61,881, altcoins have suffered the most. In fact, this period has seen high volatility in the crypto markets.
However, XRP has been going through an ongoing consolidation phase with no gains or substantial losses. However, the altcoin was not spared from market devaluation, with trading volume falling 53% in the past 24 hours.
Despite the decline in trading volume, analysts predict more profits and upward movement. For example, Egra Crypto predicted a bull run to $20. In a post shared on X (formerly Twitter) he stated:
“Next goal: Fib 0.5! Turn it around with conviction, and we’ll fly to Fib 1,618 ($6.4).”
He added,
“The first target is $6.4, and the next is $20?”
The prevailing market sentiment
Source: Markt Profhit
AMBCrypto’s analysis showed that XRP consolidated over the past seven days. The trends indicated equal strength between selling and buying pressure, with no certainty about the trend.
Our analysis showed that market sentiment was mixed at the time of going to press. Public sentiment was slightly positive, while Market Prophit was slightly negative, with both reporting a negative Z-score.
What price charts indicate
At the time of writing, the Money Flow Index (MFI), the indicator that measures the strength of the money flow, stood at 45.
This MFI showed a balanced market; experiencing relative stability between selling and buying pressure without dominance from either side, implying a consolidation phase.
Source: TradingView
Also, the simple moving average (SMA) affected the price, demonstrating a market equilibrium. Based on SMA, there was market stability with a narrow price range.
Source: Santiment
Moreover, XRP’s adjusted price-DAA divergence was 34.57%. This indicated a moderate difference between price increase and daily active address.
Greater DAA divergence implied that prices were rising due to speculative buying. Thus, a modest DAA divergence showed a small difference between daily activities and price increases.
Source: CryptoQuant
Finally, AMBCrypto’s analysis of CryptoQuant showed a slight increase in the exchange’s supply ratio in recent days. During this period, the exchange offer ratio increased slightly from 0.0270 to 0.0272.
The exchange supply ratio has remained balanced with stable supply and demand for the altcoin.
XRP at a crossroads
It is striking that consolidation phases always precede an outbreak. XRP was trading at $0.4721 at the time of writing, down 0.75% in 24 hours.
Is your portfolio green? Check out the XRP profit calculator
Sellers have broken the critical support level at around $0.466, and $0.47 remains as a support level throughout the month, showing prevailing demand and selling pressure.
So if the bulls win the battle, a small bullish reversal would push prices to the next significant level, around $0.499. However, a small break below this critical level will lead to a massive sell-off, pushing prices to $0.43.