- The latest trade suggested that XRP’s rebound could stall.
- However, technical analyzes show that the direction is not yet clear.
On June 17, blockchain analysis system Whale Alert posted those 30 million Ripple [XRP] tokens left an unknown wallet. Moments later, on-chain data confirmed that the tokens arrived on Bitstamp.
Bitstamp is one of the longest standing exchanges. Normally, an increase in the number of tokens sent to exchanges is not always good for the price. This is because most market participants prefer to hold assets from these platforms unless they plan to sell.
Source:
XRP faces a long consolidation period
Therefore, the recent trade suggests that XRP could be in line for a price drop. At the time of writing, the price of XRP was $0.51.
Interestingly, the token was the only cryptocurrency with a positive 24-hour performance among the top 10. According to CoinMarketCap, the price was up 3.97% from the previous days.
But do statistics support the idea that XRP would wipe out the gains? Let’s check it.
To start, AMBCrypto analyzed network growth. This metric measures the number of new addresses interacting with a blockchain. In more specific terms, an address is considered new if it completes the first successful transaction on the network.
For context, an increase in network growth indicates an improvement in traction. However, a decline implies that adoption of the project, as well as demand for the token, is discouraging.
At the time of writing, network growth on the XRP Ledger had slowed. Further this little question could halt XRP’s uptrend, and a drop below $0.50 could be next for the token.
In addition to the drop in adoption, the Realized Cap also indicated a possible price drop. Realized cap is the sum of realized gains and realized losses.
In a bull market, the Realized Cap reaches higher levels as the price rises. However, a decline in the. metric means that many tokens change hands.
Historically, this movement has been accompanied by a long period of consolidation. Since the Realized Cap on the XRP Ledger dropped, there is a chance that the token may struggle to continue its uptrend.
Source: Santiment
Will the price drop to $0.49?
Instead, the price may fluctuate sideways in the short term. According to actual targets, XRP could trade between $0.49 and $0.51.
From a technical perspective, AMBCrypto noticed that the longer EMA and the shorter EMA were in the same spot. This position implied that the token’s price could consolidate.
Read Ripple’s [XRP] Price forecast 2024-2025
However, the accumulation/distribution (A/D) line rose, indicating buying pressure for XRP. If buying pressure increases, XRP price could defy the bearish forecast and strengthen resistance at $0.53.
However, if accumulation slows, the next move for the cryptocurrency could be a decline from the underlying support at $0.49.
Source: TradingView