- XRP was down by more than 4% in the last seven days.
- A few metrics and indicators suggested the possibility of a trend reversal.
Altcoins are experiencing price uptrends, allowing several of them to increase their market capitalizations. However, while the prices of some alts took off, XRP was acting differently.
To see what’s going on, AMBCrypto checked the token’s state to understand whether its negative price movement will affect altcoins’ bull rally.
XRP’s performance is not at par
A popular crypto analyst, recently posted a tweet on X, highlighting an interesting development. As per the tweet, altcoins have broken out of a falling wedge that has been in place for over 2 years. Whenever prices break out of a falling wedge, it generally indicates a bull rally.
Altcoins have broken out of a Falling Wedge that has been in place for over 2 YEARS.?
What's happening now is called bullish consolidation.
The first real target is 70% higher from here.
Be patient. pic.twitter.com/lco6aY0Zqu
— ???????ⓗ? ? (@el_crypto_prof) February 2, 2024
AMBCrypto’s analysis of the crypto prices revealed that the pattern got tested as several altcoins registered price gains.
Ethereum [ETH] was up by 2.5% last week. Apart from the king of altcoins, Solana [SOL] and Cardano [ADA] also registered over 8% and 7% weekly gains, respectively.
Meanwhile, XRP bears were still maintaining the token’s price. According to CoinMarketCap, XRP was down by more than 4% in the last seven days.
At the time of writing, the token was trading at $0.5069 with a market cap of over $27.5 billion, making it the sixth largest crypto.
After spiking on the 31st of January, the token’s social volume plummeted, suggesting that not many were talking about the token.
On top of that, network activity also sank. AMBCrypto’s look at Santiment’s data pointed out that XRP’s daily active addresses declined last week.
Its network growth also dropped, meaning that fewer new addresses were created to transfer the token.
Source: Santiment
Here is the good news
Nonetheless, there was some good news as chances of the token making a recovery seemed possible.
Crypto Michael, another crypto analyst, posted a tweet mentioning how he expected XRP to rebound soon. The tweet mentioned that XRP’s price was moving in a falling wedge pattern, and if the price breaks out, it might begin a bull rally.
I’m expecting $XRP to bounce soon ? pic.twitter.com/QBwLoJ8wdi
— Crypto Michael (@MichaelXBT) February 2, 2024
To better understand the viability of this outcome, we checked XRP’s metrics. We found that, despite the price drop, XRP’s MVRV ratio recovered.
Another optimistic metric was the token’s high whale transaction count, suggesting that the big players were actively trading the token.
Source: Santiment
How much are 1,10,100 XRPs worth today
XRP’s MACD displayed a clear bullish upper hand in the market. Moreover, the token’s Chaikin Money Flow (CMF) also registered a sharp uptick, suggesting the possibility of a trend reversal.
Considering all the aforementioned metrics and indicators, whether XRP actually manages to paint its chart green like other altcoins will be interesting to keep an eye on.
Source: TradingView
