San Francisco, CA – The XRP token faced a sharp decline of over 3% in the past week, indicating a bearish trend in the market. Despite some optimistic metrics, market indicators pointed towards a potential worsening situation for the token.
XRP bears took control of the market last week, causing a drop in the token’s price. The emergence of a bearish pattern on the price chart suggested that the token might experience further losses in market capitalization in the days ahead.
According to CoinMarketCap data, XRP’s price saw a decrease of more than 3% over the last seven days, trading at $0.519 with a market capitalization exceeding $28.7 billion, making it the seventh largest cryptocurrency.
Analysis of the token’s price chart by AMBCrypto revealed a bearish pennant pattern, indicating a consolidation within the pattern and a test of the lower limit of the pattern’s price by the token.
Further analysis of XRP’s on-chain metrics showed a high social volume but a negative weighted sentiment, signaling dominant bearish sentiment in the market. Data from Coinglass indicated a decline in XRP’s long/short ratio, further supporting the likelihood of a price decline.
While some indicators hinted at a bearish breakout, other metrics supported bullish sentiment. The increase in XRP’s exchange outflow and number of whale transactions suggested active trading by whales, while a rise in network growth showed increased address creation for token transfers.
Analyzing the daily chart, a bearish crossover in the MACD and a bearish Relative Strength Index (RSI) value of 46.74 indicated a potential bearish trend for XRP’s price. Despite these signals, the Chaikin Money Flow (CMF) remained somewhat bullish, giving mixed indications on the token’s future price direction.