Despite a 24-hour trading volume surge of 19.53%, XRP faces bearish sentiment amid ongoing legal issues. Technical patterns indicate potential for a rise, but legal uncertainties heavily impact XRP’s price. XRP has been struggling due to the continuous legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). According to CoinMarketCap, at the time of press, XRP’s trading price is $0.4802, slightly up by 0.31% from the past day. Meanwhile, its market capitalization is $26,738,837,168, up by 0.32%, ranking XRP seventh. The 24-hour trading volume soared by 19.53% to $924,854,796.
XRP: Market Sentiment
Analyst Avon Marks recently tweeted about the possibility of significant price fluctuations for XRP. His analysis suggests that XRP has formed a symmetrical triangle or pennant pattern with decreasing volume, indicating that the previous upward trend might continue. He noted, “Yes, you might have seen similar pattern setups on $XRP multiple times, but with the price spiraling upward/forming in such a way, coupled with their origin (historical data) and high transaction volume, plus the already confirmed hidden bullish divergence, something big might really be coming.” The RSI (Relative Strength Index) has been creating lower lows, while the price has been forming higher lows, indicating a hidden bullish divergence. This pattern could mean the market will return to the $1.44 level.
Historically, XRP has shown major upward trends, climbing over 110,000%, indicating extreme potential for a rise. Avon Marks speculates that a full logarithmic follow-up could propel XRP’s price to over $200, more than a 400-fold increase from its current price. From a more conservative perspective, a breakout could lead to prices reaching $15-$20.
On-Site Inflow/Outflow Analysis
However, an analysis of XRP’s spot inflow/outflow chart by AMBCrypto using Coinglass shows that since September 2023, outflows (red bars) have predominantly exceeded inflows (green bars). This trend indicates sustained selling pressure, leading to a decline in XRP’s price. Now, XRP’s price has gradually decreased from around $0.60 at the end of 2023 to below $0.50 in mid-2024. This suggests that despite intermittent buying interest, the market still faces continuous selling pressure. The persistent negative net flow highlights the ongoing challenges XRP faces in maintaining an upward momentum.
AMBCrypto further examined Coinglass’s XRP futures open interest chart, which indicates a strong correlation between open interest throughout the year and XRP’s price. Peaks in open interest often coincide with significant price movements, suggesting increased trading activity and investor interest during these periods. Whether realistic or not, here are XRP’s market capitalizations in BTC terms: High open interest periods like late March and mid-November coincide with significant price fluctuations. This pattern implies that traders are actively positioning themselves in the futures market, anticipating potential volatility and price changes for XRP