Will XRP make a comeback after the recent price decline? Data suggests…
Posted:
| Last updated: January 30th, 2024
editors
- The downtrend in the market seems to have caught up with XRP as its decline enters day two.
- MVRV and active addresses have also declined as holders watch the market direction.
These past several days have seen a tremendous price run for Ripple (XRP), with the upswing carrying it to the same price region it reached back in January.
The recent price action, however, suggests that XRP may be experiencing the “ripple effect” of the current crypto market decline.
Read Ripple (XRP) Price Prediction 2023-24
The Ripple decline
Ripple (XRP) has seen two dramatic price swings during the past five days. The coin was in an uptrend from March 6 to March 8 and gained more than 11%. But from March 9 to the time of writing, its value had decreased by about 9%. It was selling at about $0.36, down 3% as of this writing.
Source: TradingView
XRP entered a bear trend due to the price decrease it experienced on 9 March. But, the further decrease on 10 March changed it, according to the Relative Strength Index line, to a stronger bear trend.
The RSI line was at 40 as of the time of writing, with a further dip below it and a drop in price likely. Also, the long and short Moving Averages (blue and yellow lines) served as resistance, as did its resistance level between $0.39 and $0.43.
Ripple’s MVRV and active address declines
As a result of the price drop, it no longer spent much time in the “overvalued” pricing range. According to Santiment’s Market Value to Realized Value (MVRV) statistic, during the past 30 days, XRP has been losing value. As of this writing, the MVRV had fallen to -5.1%, indicating that it was undervalued and that holders were doing so at a loss.
Source: Santiment
Also, the decrease in addresses transacting XRP was influenced by the reduction in its price. There has been a fall in the number of active addresses, according to Santiment’s 24-hour active address indicator.
The decline is a sign of decreasing trading activity.
Source: Santiment
Positive sentiment towards XRP
Well, the good perception of the Ripple/SEC case contributed to the upswing that XRP was experiencing before its collapse. There have been hints recently that Ripple might have the better deal in the current case.
Furthermore, one of Ripple’s leading attorneys, John Deaton, recently claimed in a tweet that the SEC v. Ripple case judge suggested that the SEC lawyers were more focused on advancing their personal agendas than enforcing the law.
How much are 1,10,100 XRPs worth today
It is still unclear how much Ripple (XRP) may decrease. However, holders should prepare for further loss if the decline breaks through the $0.033 and $0.31 support levels.
