In recent days, Ripple Labs’ native token XRP has struggled to gain momentum, and data suggests it will likely continue to struggle in the coming days. This negative speculation is based on recent activity by investors and long-term holders amid continued market uncertainty.
On-chain bearish actions
Data from spot entry and exit metrics from on-chain analytics firm Coinglass reveals that exchanges saw a significant XRP inflow of $62 million over the past 48 hours. This large influx of XRP tokens onto exchanges indicates potential dumping, which could lead to lower prices and increased selling pressure.
In addition to this significant inflow, the long/short ratio, which measures trader sentiment, currently stands at 0.92, signaling a bearish outlook as short positions dominate.
However, this comes during a period where the asset has seen continued price consolidation over the past six days.
XRP Technical Analysis and Price Prediction
According to expert technical analysis, XRP looks neutral until it breaks out of the ongoing consolidation between the $2.90 and $3.30 levels.
Based on recent price momentum, if XRP breaks through the consolidation and closes a daily candle above the $3.32 level, there is a strong possibility that it could surge 32% to reach the 4 level, $50 in the next few days. Conversely, if XRP breaks out of consolidation and closes a daily candle below the $2.85 level, it is likely to decline by 10% to reach the $2.58 level in the future.
On the positive side, the Relative Strength Index (RSI), currently at 65, indicates that XRP is approaching overbought levels but still has room for further bullish momentum.
Current Price Dynamics
Despite the bearish outlook, XRP is currently trading near $3.25 and has seen a 1.60% price increase over the past 24 hours. However, during the same period, its trading volume fell by 35%, indicating less participation from traders and investors compared to the previous day.
