Will XRP Price Fall to $0.47 Amid Bearish Indicators?

  • Selling pressure on XRP has increased over the past seven days.
  • Most technical indicators suggested that XRP would not test the bearish pattern.

XRP It had an optimistic week as its price rose more than 2%, but volatility decreased. The recent slow price action could just be a prelude to a southward price move as a bearish pattern emerged on the token’s chart.

The bearish outlook for XRP

CoinMarketCap’s data revealed that the token’s momentum slowed as its price only moved marginally in the last 24 hours. At the time of writing, XRP was trading at $0.5297 with a market capitalization of over $29.3 billion, making it the seventh largest cryptocurrency.

Meanwhile, a bearish pattern appeared on the token’s daily chart.

AMBCrypto analysis found that a bearish pennant pattern formed in mid-April when XRP witnessed a major price drop. Since then, the token price has consolidated within the pattern.

If XRP tests the pattern, then its price action would soon turn bearish and fall below the lower trend line, resulting in further price movement to the south.

A bearish pennant pattern on the XRP chartA bearish pennant pattern on the XRP chart

Source: TradingView

AMBCrypto then analyzed Santiment data to see if the metrics supported the possibility of a price drop.

According to our analysis, XRP’s currency inflow skyrocketed several times last week. A rise in the metric meant that investors were dumping the token, suggesting high selling pressure.

Its NVT ratio also spiked sharply on May 24, indicating that XRP could be overvalued. Whenever an asset is overvalued, it indicates a price correction.

Another bearish metric was the MVRV index, which declined in recent days.

XRP Exchange Inflow SoaredXRP Exchange Inflow Soared

Source: Sentiment

However, some of the other metrics seemed quite optimistic. For example, the token’s weighted sentiment increased. This meant that investors were confident in the token as bullish sentiment around it dominated the market.

AMBCrypto’s look at Coinglass data revealed that the token’s long/short ratio also increased in the last 12 hours. A high long-short ratio can be inferred as a bullish signal as it suggests a greater desire among investors to purchase an asset.

Source: Coinglass

Where is XRP headed?

To better understand if XRP would turn bearish soon, AMBCrypto took a look at its daily chart. We found that after a drop, XRP’s Chaikin Money Flow (CMF) recorded a rebound.

The money flow index (MFI) also rose, indicating an increase in prices. If these indicators turn out to be true, XRP may not test the bearish pennant pattern and continue to be bullish.

Source: TradingView

Is your wallet green? Review the XRP Profit Calculator

If XRP manages to remain bullish, then its price could reach $0.544 first as the sell-off would increase to that level. Generally, high liquidation leads to price corrections.

On the other hand, if XRP tests the bearish pattern, then its price could fall to $0.47 in the coming days.

Source: Hyblock Capital

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