Over the past few days, Ripple Labs’ native token, XRP, has been struggling to gain momentum and data suggests it will likely continue to struggle going forward. These negative speculations are based on recent activity by investors and long-term holders amid ongoing market uncertainty.
Bearish On-Chain Indicators
Spot inflow-outflow indicator data from on-chain analytics firm Coinglass shows that exchanges have seen $62 million worth of XRP inflows in the past 48 hours. This significant influx of XRP tokens into exchanges represents a potential dump that could lead to lower prices and increased selling pressure.
In addition to significant inflows, the long/short ratio, which measures trader sentiment, is currently at 0.92, signaling a bearish outlook as short positions dominate.
However, this comes during a period of sustained price consolidation for the asset over the past six days.
XRP technical analysis and price prediction
According to expert technical analysis, XRP appears to be neutral until it breaks out of the ongoing consolidation between the $2.90 and $3.30 levels.
Based on the recent price momentum, if XRP breaks the consolidation and closes the daily candle above the $3.32 level, it is likely to surge 32% and reach the $4.50 level in the next few days. Conversely, if XRP breaks out of consolidation and closes the daily candle below the $2.85 level, it is likely to fall 10% in the coming days and reach the $2.58 level.
On the positive side, the Relative Strength Index (RSI) is currently at 65, indicating that XRP is approaching overbought levels but still has room for further upward momentum.
Current price momentum
Despite the bearish outlook, XRP is currently trading near $3.25 and has experienced a 1.60% price surge over the past 24 hours. However, during the same period, trading volume decreased by 35%, showing that the participation of traders and investors was lower than the previous day.