In Miami, Florida, the cryptocurrency XRP recently experienced a significant drop in price, with a decline of over 11% in the past 24 hours. Market indicators initially suggested a possible reversal of the bearish trend, but Ripple’s XRP has struggled to show any signs of recovery following the recent market crash.
Unfortunately for XRP, the token failed to test a long-term bullish pattern, indicating a potential further decline in price. CoinMarketCap reported that XRP’s price had plummeted by more than 18% over the last seven days, with double-digit declines occurring in just the past 24 hours.
At the time of reporting, XRP was trading at $0.4844, with a market capitalization exceeding $26.7 billion. The token’s value dropped below $0.5, failing to test a symmetrical triangle pattern that had been in place for six years.
Analysis of Santiment’s data by AMBCrypto revealed several bearish metrics, including a sharp decline in the token’s MVRV ratio and an increase in its NVT ratio, signaling that XRP may have been overvalued. Additionally, the token’s daily on-chain transaction volume in losses spiked sharply due to the recent market crash.
Although XRP’s derivatives metric appeared bullish, with a sharp drop in Open Interest leading to a potential trend reversal, uncertainties remain. The global geopolitical landscape, particularly the conflict in the Middle East, could continue to exert downward pressure on crypto prices, keeping XRP and other top digital assets bearish in the coming weeks.
Looking ahead, XRP’s price movement remains uncertain, with support levels indicating a potential drop to $0.46 if the downtrend persists. However, a test of this support level could trigger a bull rally, while a different scenario could see XRP’s price drop to $0.42. It’s a tense time for XRP investors as they navigate the volatile cryptocurrency market.