Markets
XRP trading volume decreased by 53%.
- XRP trading volume down 53%, but market remains undecided.
- XRP’s sustained consolidation leaves analysts optimistic of a rally to $20.
With Bitcoin [BTC] Altcoins suffered the most, falling 5.4% to $61,881 over the past seven days. In fact, this period has seen high volatility in the cryptocurrency markets.
However, XRP experienced a sustained consolidation phase without substantial gains or losses. The altcoin was not spared from the market depreciation, however, with trading volume down 53% in the last 24 hours.
Despite the decline in trading volume, analysts are forecasting further gains and growth. For example, Cryptocurrency Egra projected a bull run up to $20. In a message shared on X (formerly Twitter), he said:
“Next target: 0.5 Fib! Let’s flip it with conviction, and we’ll fly to 1.618 Fib ($6.4).”
He added,
“The first target is $6.4, and the next one is $20?”
Dominant market sentiment
Source: Market Prophet
AMBCrypto analysis showed that XRP has consolidated over the past seven days. Trends indicated equal strength between selling pressure and buying pressure, with no certainty on the trend.
Our analysis showed mixed sentiment in the market at the time of publication. Crowd sentiment was slightly positive, while Market Prophit was slightly negative, with both posting a negative Z-score.
What the price charts indicate
At press time, the Money Flow Index (MFI), the indicator that measures the strength of money flows, was at 45.
This MFI has shown a balanced market; experiences relative stability between selling and buying pressures without domination on one side or the other, which implies a consolidation phase.
Source: TradingView
In addition, the Simple Moving Average (SMA) touched the price, which showed the balance in the market. Based on the SMA, the market was stable with a narrow price range.
Source: Santiment
Additionally, the DAA divergence of XRP’s adjusted price was 34.57%. This indicates a moderate difference between the price rise and the daily active address.
A higher DAA divergence implied that prices were increasing due to speculative buying. Thus, a moderate DAA divergence showed a slight difference between daily activities and price increases.
Source: CryptoQuant
Finally, AMBCrypto’s CryptoQuant analysis showed a slight increase in the exchange supply rate over the past few days. During this period, the exchange supply rate increased slightly from 0.0270 to 0.0272.
The exchange supply ratio remained balanced with stable supply and demand for the altcoin.
XRP at a crossroads
It is worth noting that consolidation phases always precede a breakout. XRP was trading at $0.4721 at press time, down 0.75% in 24 hours.
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Sellers broke through the critical support level around $0.466, and $0.47 remains as a support level for the entire month, showing dominant demand and selling pressure.
So, if the bulls win the battle, a slight bullish reversal would push prices towards the next significant level, around $0.499. However, a slight break below this critical level would trigger a massive sell-off, pushing prices to $0.43.