- The token’s price has fallen by more than 3% over the past seven days.
- While some indicators looked bullish, market indicators suggested otherwise.
Ripple The bears dominated the market last week, during which the token’s price dropped, and things could get even worse for the token as a bearish pattern has emerged on the token’s price chart.
A bearish breakout could lead to a significant loss in the token’s market capitalization over the coming days.
XRP Bears Are Getting Ready
CoinMarketCap data It has emerged that XRP has recorded a price drop of over 3% over the past seven days. At the time of writing, the token is trading at $0.519, with a market capitalization of over $28.7 billion, making it the seventh-largest cryptocurrency.
Meanwhile, analysis of the token’s price chart by AMBCrypto revealed a bearish pennant pattern.
Source: TradingView
The token’s price entered this pattern in mid-April and has been stable within the pattern ever since. At the time of writing, the token’s price was testing the lower limit of the pattern.
If the bears maintain their dominance, a southern breakout may occur soon. If true, investors may witness the token’s price drop to $0.477.
Is a price drop inevitable?
To understand whether a price drop is possible, AMBCrypto analyzed the token’s on-chain metrics: According to an analysis of Santiment’s data, XRP’s social volume remains high, reflecting its popularity in the cryptocurrency space.
However, the sentiment weighted remains in the negative territory, implying that bearish sentiment prevails in the market.
Source: Santiment
In addition, coin glass data We see that XRP’s long/short ratio has declined on the 4-hour time frame, with a lower ratio indicating bearish sentiment and further hinting at a price decline.
Moreover, the MVRV ratio is declining sharply, which can be inferred as a bearish signal.
Still, other indicators have bolstered the bulls. For instance, XRP outflows from exchanges surged last week, and the token’s whale trading count is relatively high, suggesting that whales are actively trading the token.
More addresses were created to transfer tokens, which was evident from the rapid growth of the network.
Source: Santiment
We then analyzed the daily chart to get a better idea of which direction the token’s price was heading in. We noticed that the MACD was showing a bearish crossover. At the time of writing, the Relative Strength Index (RSI) value was 46.74, indicating bearishness.
Whether it’s realistic or not, XRP market capitalization converted to BTC
Additionally, the token’s Money Flow Index (MFI) also recorded declines and fell below the neutral level. These market indicators suggest that a bearish breakout is likely.
However, Chaikin Money Flow (CMF) is still above neutral levels and remains slightly bullish.
Source: TradingView
