Ripple’s XRP price, which recently experienced a surge of 350% in just 30 days, has now fallen from its peak of $2.80. This dip in price may be attributed to a decrease in XRP exchange outflows, as recent data suggests. If this trend continues, XRP could risk losing more of its recent gains, causing concern among investors.
On December 4, XRP exchange outflow was recorded at 980.65 million. However, as of the latest data, this figure has dropped significantly to 44.17 million, indicating a notable decrease of 936.48 million. This metric tracks the number of tokens being taken out of exchanges, with an increase typically indicating that holders are not willing to sell, leading to a potential price increase. Conversely, a decrease in exchange outflows could signal a decline in bullish conviction, potentially resulting in a drop in price.
According to Santiment, XRP’s Weighted Sentiment has seen a sharp decline, plummeting from 6.75 to 0.035. Weighted Sentiment reflects market perception and participant sentiments, with a rising sentiment indicating bullishness and growing enthusiasm around the token. Conversely, a decline in sentiment suggests bearish sentiment, signaling reduced confidence and negativity in the market. If this trend persists, it could lead to a decrease in demand for XRP, potentially causing a price decline as market interest fades.
Looking at the daily chart, XRP has displayed three consecutive red candlesticks, signaling selling pressure on the altcoin. Additionally, the trading volume of XRP has decreased, indicating more selling than buying activity. If this selling pressure continues and XRP exchange outflows decline, the price of XRP might drop further, potentially reaching $1.90. In a highly bearish scenario, the altcoin could drop to $1.46, although this trend could change if exchange outflows increase again, leading to a possible bounce back in price to $2.90.
In summary, the recent decline in XRP’s price can be attributed to a decrease in exchange outflows and a drop in Weighted Sentiment, reflecting a bearish sentiment in the market. If these trends persist, XRP may face further price declines, potentially dropping below $2. It will be essential to monitor exchange outflows and market sentiment to assess the future trajectory of XRP’s price and determine whether it will rebound or continue to face downward pressure in the near term.
