In recent weeks, the price of XRP has fluctuated greatly. After a brief period of elation following Ripple’s court victory over SEC, the price action of XRP revealed that the bears were firmly in charge.
XRP rose past $0.80 at the height of Ripple’s court triumph, reaching a high not seen since April 2022. But this happiness didn’t last long. The anticipation subsided when XRP’s value plummeted, wiping away its gains and sending it back into bearish territory.
The rapid turnabout aroused concerns about the sustainability of the cryptocurrency’s rising trend. Investors who once had high hopes for XRP are now unsure of the next turnout.
Related article: XRP Holders List Highlights: U.S., U.K., and Australia in Top 3
XRP Market Perception Portrays a Bleak Scenario
A popular crypto trader, Benjamin Cowen, noted that “XRP has retraced the entirety of the move that came after the SEC vs. Ripple case.” This claim confirms the perception of the market. It also suggests that the price increase brought about by the legal victory was momentary.
According to Coinmarketcap, XRP is currently trading at $0.4768. The seven-day dip is about 4.85%. This fall reflects a bearish outlook for XRP.
From the beginning of August, the daily chart for XRP has shown a declining trend, reinforcing the bearish mood. Given that the bulls couldn’t surpass the $0.5 resistance last week, another attempt at that mark might be advantageous for those looking to sell short.
Bearish Trend Becoming Evident
On-chain analytics for XRP show that there has been a noticeable selling push.
Over the last month, the price and the On-Balance Volume (OBV), an indicator that monitors buying and selling volumes, have both been declining.
This shows that sellers have dominated the market while buyers have found it difficult to have an impact, especially over longer periods. This situation strengthens the bearish outlook for XRP.
Although network-wide accumulation could be inferred from this, it doesn’t assure an immediate upward trend. In light of the unpredictable market situation, investors should exercise caution and vigilance.
The recent price movements of XRP have cast doubt on its potential. Despite the initial optimism stemming from Ripple’s legal success, the bears have regained dominance, causing a decline in XRP’s worth.
Given that important indicators are pointing to selling pressure and market uncertainty, the future of XRP remains unclear, forcing investors to contemplate their next steps in this volatile environment.
Read Also: Ripple: Upcoming Surge or Disaster for XRP?
