XRP requires a significant rebound to the 50-MA, approximately $1.60, prior to resuming its upward momentum, according to one analyst. Somewhat anticipated in light of the recent surge of hostilities in the Middle East, the cryptocurrency market has once again experienced a downturn, with Ripple’s cross-border token reflecting this trend. While the short-term outlook appears grim, on-chain data reveals certain charts that offer a more optimistic perspective on the macroeconomic scale.
The price of the cross-border token experienced a significant decline at the beginning of the month, reaching $1.01 for the first time in almost two years, coinciding with a broader market downturn. It rebounded swiftly in the following days and even challenged the $1.20 resistance, where it was rejected and subsequently declined to under $1.10 within days. The past week or so has been notably less eventful, as the asset has been trading sideways within the range of $1.09 to $1.12. The support level was breached on Monday morning as the market adjusted to the recent hostilities between the US and Iran. Ripple’s coin declined to just below $1.07, marking the first occurrence of this level since the previously mentioned low earlier this month.
In addition to market weakness, another potential factor contributing to the asset’s decline is the activity surrounding ETFs. After nine consecutive weeks of net inflows, that streak was finally interrupted last week, with over $7 million exiting the funds. There’s more, though: on-chain data from Santiment and Ali Martinez indicates that whale activity on the XRP Ledger has “cooled significantly.” The volume of large transactions exceeding $1 million has decreased significantly, from 70 to merely 2 within the span of a week. Previously, Santiment observed that the XRP Ledger activity had “gone unusually quiet,” with newly created wallets declining to their lowest levels in nearly two years.
CRYPTOWZRD remarked on XRP’s recent price fluctuations, noting that it had concluded “indecisively.” The analyst anticipates “further upside” should Ripple’s token achieve traction against BTC, a scenario that has not materialised for an extended period. Meanwhile, EGRAG CRYPTO maintains a strong bullish outlook on the token’s long-term potential. In a recent post on X, he observed that history may be repeating itself for XRP, as various indicators imply that the macro bottom has been reached.