Altcoin
XRP Rally Hits Big Hurdle: What Will the Altcoin Do Now?
- XRP collapsed when Ripple moved 50 million tokens, causing a stir in the market.
- Overall market sentiment for XRP is mixed, with neither bulls nor bears in control.
The one from Ondulazione [XRP] the recent price surge has hit a wall, leaving investors wondering what is blocking its momentum. The cryptocurrency saw a promising 6% increase yesterday, but today fell by 2%.
What’s Dragging XRP Down?
Why is XRP falling today?
Recent data from blockchain tracker Whale Alert revealed a massive transfer of 50 million XRP tokens from Ripple Labs Inc. to an unknown wallet worth around $25.7 million.
This large-scale movement follows another huge transaction last week, in which over 100 million XRP was sent to an external wallet.
Typically, these Ripple dumps tend to negatively shake the price of XRP. This is because they increase the supply of XRP in the market, which can lead to downward pressure on the price if demand remains constant.
And so it was: XRP crossed the $0.55 mark less than 24 hours ago, but as of this writing the token is worth $0.53.
What does the market tell us?
AMBCrypto’s look at Coinglass’ data revealed that XRP trading volume increased slightly by 3.68%, totaling $1.41 billion, indicating a moderate increase in trading activity.
However, Open Interest decreased by 2.93%. This decline suggests a slight cooling of market enthusiasm or a phase of consolidation.
Source: Coinglass
The long/short ratio between the platforms showed a mix of bullish and bearish sentiments. These mixed signals have suggested a cautious sentiment among traders and investors.
The contrast in Long/Short ratios means that while some top traders are bullish, the broader market remains divided. If the bullish bets of top traders prove correct, we could see an upward movement in the price of XRP.
Meanwhile, AMBCrypto’s look at social sentiment data revealed that the Ripple Fear and Greed Index stood at 54% at the time of writing, indicating neutral market sentiment for XRP.
Source: CFGI
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Investors may consider holding their positions as suggested by the index’s “Hold On” investment recommendation, keeping an eye on volume dynamics, order book conditions and whale activity.
These factors could quickly shift market sentiment in either direction.