Ripple’s (XRP) price, which recently surged by 350% over 30 days, has now fallen from its peak of $2.80. This downturn may be tied to a decrease in XRP exchange outflows, as recent data indicates.
If this trend persists, XRP could lose more of its recent gains.
Ripple Investors No Longer HODLing in Numbers
On December 4, XRP exchange outflow was 980.65 million. As of this writing, it has decreased to 44.17 million, indicating a difference of 936.48 million. This metric tracks the number of tokens taken out of exchanges.
When it increases, it means that most holders are not willing to sell. Hence, the cryptocurrency’s price can increase. On the other hand, a decrease indicates that the bullish conviction is no longer as high as it was and could lead to a price decrease.
Considering XRP’s current price is around $2.33, the exchange outflow between yesterday and the time of writing is worth $2 billion. Given the stated conditions, if the outflow continues to fall, XRP’s price might do the same.
Furthermore, according to Santiment, XRP’s Weighted Sentiment has seen a significant decline, dropping from 6.75 to 0.035. Weighted Sentiment gauges market perception, reflecting whether participants are optimistic (bullish) or pessimistic (bearish) about a cryptocurrency.
A rising sentiment indicates growing bullishness and enthusiasm around the token, while a decline points to bearish sentiment, signaling reduced confidence or negativity in the market. If this trend persists, it could dampen demand for XRP, potentially leading to a price decline as market interest wanes.
XRP Price Prediction: Time to Drop Below $2?
On the daily chart, XRP has flashed three consecutive red candlesticks, indicating selling pressure on the altcoin. A further look at the chart shows that the trading volume of the cryptocurrency has decreased.
In short, a ton of the volume confirms that there has been more selling than buying. Should this continue, then XRP’s price might continue to fall. If validated and XRP exchange outflow declines, the value might drop to $1.90.
In a highly bearish scenario, the altcoin could drop to $1.46. However, this trend might change if the exchange outflow increases again. In that case, the price could bounce to $2.90.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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