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- XRP trading volume dropped by 53%, but the market remained hesitant.
- XRP’s ongoing consolidation leaves analysts optimistic about a rally to $20.
with Bitcoin [BTC] Altcoin prices fell by 5.4% to trade at $61,881 in the past seven days, with the coins being the hardest hit. In fact, this period witnessed high volatility in the cryptocurrency markets.
but, XRP It experienced a sustained consolidation phase without significant gains or losses. However, the altcoin was not spared from the market drop in value, as trading volume dropped by 53% in the last 24 hours.
Despite the low trading volume, analysts are expecting further gains and upward movement. For example, Encryption Expect as high as $20. In a post shared on X (formerly Twitter), he said:
“Next target: Fib 0.5! Flip it with conviction, then we fly to Fib 1.618 ($6.4).”
he added,
“First target is $6.4, next target is $20?”
Market sentiment
Source: Prophecy Market
AMBCrypto analysis showed that XRP has been consolidating over the past seven days. Trends indicated equal strength between buying and selling pressures, without certainty about the direction.
Our analysis showed a divergence in market sentiment at the time of publication. Public sentiment was slightly positive, while Market Prophit sentiment was slightly negative, with both reporting negative Z-scores.
What the price charts indicate
At press time, the Money Flow Index (MFI), an index that measures the strength of money flows, was at 45.
This MFI showed a balanced market; there was relative stability between buying and selling pressures without either side dominating, which meant a consolidation phase.
Source: Trading View
The simple moving average (SMA) also touched the price, which showed the market was balanced. Based on the Simple Moving Average (SMA), there has been stability in the market with a narrow price range.
Source: Santiment
Additionally, the adjusted price divergence of XRP on DAA is 34.57%. This indicates a moderate gap between the price rise and the daily active address.
A higher DAA divergence indicates that prices were rising due to speculative buying. Hence, the moderate divergence in DAA showed little difference between daily activities and price increases.
Source: CryptoQuant
Finally, AMBCrypto’s analysis of CryptoQuant shows a slight increase in the exchange’s supply ratio over the past few days. During this period, the exchange’s supply ratio rose slightly from 0.0270 to 0.0272.
The supply and demand for altcoins remained in balance.
XRP at a Crossroads
It is worth noting that consolidation stages always precede a breakout. XRP was trading at $0.4721 at press time, down 0.75% in 24 hours.
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Sellers broke the critical support level around $0.466, and $0.47 remained throughout the month as a support level, indicating prevailing demand and selling pressure.
Hence, if the bulls win the battle, a minor bullish reversal would push prices to the next important level, around $0.499. However, a slight break below this critical level will trigger a broad sell-off, pushing prices to $0.43.
