- XRP transactions in the $100,000 to $1 million increased, suggesting a price recovery.
- The token may fall below $0.60 before any jump.
Ripple’s [XRP] seven-day 8.80% decrease could be on the verge of a recovery, based on indications shown by on-chain data. One reason for this assertion, according to AMBCrypto’s analysis, was because of whales’ interest in the cryptocurrency.
According to the data provided, XRP transactions in the $1 million region have been increasing for some days.
It was also the same situation with transactions valued at $100,000 and above. Historically, when whale transactions pick up at a time when XRP falls, the price rises.
Never a straight line to revival
So, it could be time to watch out for the significant changes in the XRP price pattern. To do this, AMBCrypto decided that a look from the technical angle was necessary.
From the XRP/USD 4-hour chart, the 20-day EMA (blue) had a downward crossover below the 50 EMA (yellow).
This crossover is a bearish sign. So, XRP can fall below the $0.60 threshold.
In fact, if the EMA position is accompanied by high trading volume, the drawdown may be faster. But at press time, Ripple’s trading volume decreased, indicating a drop in spot trading of the asset.
Another indicator evaluated is the Money Flow Index (MFI). At the time of writing, the MFI was 23.53. The MFI measures the selling and buying pressure by looking at the price and volume data.
A value of the MFI above 80 is considered overbought. When the indicator is below 20, it is termed oversold. XRP’s potential recovery could also be found in the MFI trend. Should the MFI hit 20.00 or below, then XRP might reverse its direction to the upside.
Open Interest declines
Furthermore, the Accumulation/Distribution (A/D) of the cryptocurrency had flattened. For a confirmation of the XRP uptrend, the accumulation has to increase. If accumulation increases, then XRP may be able to hit $0.65 in the short term.
Meanwhile, the Open Interest around the Ripple token has fallen, based on AMBCrypto’s evaluation of Coinglass data.
At press time, the Open Interest was down to $605 million.
Open Interest is the amount of liquidity allocated to open positions in the futures market. When the Open Interest increases, it implies a surge in market interest. Source: Santiment
Read Ripple’s [XRP] Price Prediction 2023-2024
However, XRP’s Open Interest decline means traders are refraining from opening more positions.
The lack of interest could be due to the uncertainty in the market. Irrespective of that, XRP has the potential to head in the upward direction. But first, another decrease may be next.