XRP

XRP Price Drops 9% as Bearish Momentum and Spot Outflows Accelerate

XRP has faced significant downward pressure, with its value declining by 9% over the past week. The bearish sentiment surrounding the altcoin continues to grow, fueled by accelerating outflows from spot markets and weak technical indicators.

Bearish Indicators Signal Trouble

The XRP/USD one-day chart highlights a troubling trend for the altcoin. Notably, the Elder-Ray Index—a key indicator of buying and selling pressure—has turned negative for the first time in 15 days, showing a red histogram bar at -0.10. This suggests sellers are firmly in control, amplifying the downward momentum.

The Elder-Ray Index measures the balance of power between buyers and sellers. A negative reading indicates stronger selling pressure, often signaling further declines in an asset’s price.

XRP Elder-Ray Index.
XRP Elder-Ray Index. Source: TradingView

Additionally, data from Coinglass reveals $96 million in outflows from XRP spot markets over the past three days. Such substantial outflows reflect declining confidence in the asset, as traders either take profits or shift to other investments, exacerbating the selling pressure.

XRP Spot Inflow/Outflow.
XRP Spot Inflow/Outflow. Source: Coinglass

MACD Confirms Bearish Momentum

The Moving Average Convergence Divergence (MACD) indicator further supports the bearish outlook. XRP’s MACD line is currently below its signal line, signaling that selling activity outweighs accumulation. This bearish setup suggests the altcoin may struggle to recover in the near term, with its price potentially dropping to $2.45 if the trend persists.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView

Can XRP Rally Back?

Despite the bleak short-term outlook, a resurgence in demand could provide a lifeline for XRP. If buying pressure increases, the altcoin might aim to reclaim its all-time high of $3.41. However, with current indicators signaling strong bearish momentum, a recovery appears unlikely unless market sentiment shifts drastically.

Also Read: Will Ripple’s Legal Battle with the SEC Stall XRP’s Growth? April 2025 Deadline Looms as Ripple Stands Firm

In conclusion, XRP remains under intense selling pressure, driven by bearish technical indicators and substantial spot market outflows. While a turnaround is possible, investors should prepare for potential further declines before any significant recovery materializes.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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