Investor Confidence in Ripple Wanes
Long-term XRP holders are crucial in influencing the cryptocurrency's price trajectory. These investors typically retain their assets for more than 12 months, and any selling activity from this group is viewed as a definitive bearish indicator.
Their behavior is monitored through metrics such as total age consumed when transferring their holdings between addresses. A notable spike in this metric indicates a substantial movement of tokens. While recent activity among Ripple's long-term holders hasn't shown significant spikes as seen in previous instances, it still suggests a decline in investor conviction.
In the past, when similar events have occurred, XRP prices have typically experienced corrections. It's reasonable to anticipate a similar outcome during the current situation.
A bearish signal would be confirmed when the Relative Strength Index (RSI) drops below the neutral line at 50.0. The RSI is a momentum oscillator that gauges the velocity and magnitude of price changes, signaling overbought and oversold conditions.
Crucial support levels have been breached in the XRP price prediction
XRP is currently hovering above the $0.606 support level, having dipped below the 50-day Exponential Moving Average (EMA). Should the $0.606 support also falter, the cryptocurrency risks losing the 100-day EMA as a supportive level. Consequently, XRP could experience additional downward pressure, potentially falling to $0.555.
Despite the bearish outlook, the Average Directional Index (ADX) indicates that the bearish trend has not yet intensified. With the ADX still below the 25.0 threshold, the current trend lacks significant momentum.
March 2024, Cryptoniteuae