- XRP transactions in losses exceeded those in profits.
- XRP accumulation has decreased in the past few weeks.
Following significant profit-taking activity last week, XRP traders have recorded losses on their token sales, on-chain data from Santiment revealed.
Source: Santiment
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According to data from Santiment, an assessment of the altcoin’s ratio of on-chain transactions volume in profit to loss showed the metric logging a value of -0.084, suggesting that the volume of transactions that resulted in losses exceeded those that traders saw profit on.
While this does not favor day traders, it is often taken as a signal of an upcoming positive price correction. Is XRP well positioned for this to happen?
Look before you leap
At press time, XRP exchanged hands at $0.468. The token logged a 0.71% growth in price in the last 24 hours, with a 48% drop in trading volume per data from CoinMarketCap.
On a daily chart, an assessment of the alt’s Moving Average Convergence/Divergence (MACD) indicator revealed that it commenced a new bear run on 12 June. This was when the MACD line intersected the trend line in a downtrend, ushering in the bears.
When the MACD line intersects with the trend line in this manner, it suggests that the short-term moving average is crossing below the long-term moving average, signaling a potential shift toward a bearish momentum, followed by a price decline.
Further, the Directional Movement Index (DMI) showed that the bears had control of the XRP market and have since taken control since the end of June. The negative directional index (red) rested solidly above the positive directional index (green) at press time.
With the bears in control in the past few weeks, XRP accumulation has plummeted. For example, key momentum indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) were in downtrends, signaling that selling exceeded buying amongst day traders.
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Interestingly, XRP’s price rested on the lower band of its Bollinger Bands indicator at press time. The lower band represents a level of support, showing that the price is approaching the lower end of its typical trading range.
This suggests that XRP’s price may have reached a point of oversold conditions or undervaluation, suggesting a potential reversal or bounce-back in the coming days.
Source: XRP/USDT, TradingView