Journalist
Posted:
- XRP has declined by 15.3% over the past day, at press time.
- Despite strong downward pressure, XRP investors are yet to lose confidence in the short term.
Over the past day, as the crypto market suffered a dip, Ripple[XRP] was not spared.
At press time, XRP has declined from $2.61 to a low of $2.21 making a 15.38% decline in 24 hours. Equally, the altcoin has declined on weekly and monthly charts by 12.3% and 27.8%.
This sustained decline has left analysts talking over a potential top. Inasmuch, Alphractal’s founder Joao Wedson suggested three aspects signaling XRP has reached a market top.
Has XRP reached the top?
According to Wedson, XRP seems to have reached the market top and could decline by 50% or more before another rally.
Source: Alphractal
In his analysis, Wedson noted three major factors signaling a potential top. Firstly, a good portion of the bulls were liquidated. The market seems positioned to see more longs getting liquidated.
Over the past day, $43 million long positions have been liquidated as the market crashed.
Source: Alphractal
Secondly, XRP’s buying pressure has dropped from $5 billion to $1.3 billion. This implies more investors are selling, with sell volume hitting $1.4 billion over the past day. Usually, a drop in buying pressure means low demand for the asset, which usually precedes price drops.
Finally, Wedson observed that Binance has been pushing for sales in recent days. Binance is the largest exchange, and high sell volume from its investors would exacerbate price declines, resulting in more losses.
Therefore, if this turns out to be the top as observed by Alphractal, a 50% decline from the current market price will see XRP drop to $1.1.
What XRP charts suggest
Source: Coinglass
While the above analysis points to a potential top, buyers have not yet lost market conviction. AMBCrypto observed this as XRP’s spot netflow has remained negative over the past four days.
Spot netflow has still dropped to -$16.02 million over the past day, even with the market crashing. Buyers are still active in the market, and sellers are yet to outweigh them.
Source: CryptoQuant
This conviction remains strong among whales, with the Whale to Exchange Flow declining from 15k to 1k, at press time.
This implies that whales are not selling and would need more reasons to exit the market. With whales still active and holding their positions, the market could avoid a strong drop.
Although market conditions point towards an inevitable dip, the short-term trajectory could be different.
Investors are yet to lose market confidence, as evidenced by the fact that whales are not selling and all participants are still buying.
If a market top drops, XRP will breach the $2.0 support level and drop to $1.7. However, if the netflow holds strong, it could reverse to $2.3.
