The price of Ripple (XRP), which recently surged 350% in 30 days, has now fallen from its peak of $2.80. This drop may be linked to a decrease in XRP outflows from exchanges, as recent data suggests.
If this trend continues, XRP may lose more of its recent gains.
Ripple investors no longer hold large numbers
On December 4, XRP outflows from exchanges were 980.65 million. As of this writing, they have dropped to 44.17 million, indicating a difference of 936.48 million. This metric tracks the number of tokens taken from exchanges.
When it increases, it means that most holders are not willing to sell. Therefore, the price of the cryptocurrency can rise. On the other hand, a decrease indicates that the bullish conviction is no longer as high as it was and can lead to a price decline.
Given that the current price of XRP is around $2.33, the outflows from exchanges between yesterday and the time of writing are estimated at $2 billion. Given the above conditions, if the outflows continue to decline, the price of XRP may do the same.
XRP exchange outflow rises.
Furthermore, according to Santiment, XRP’s weighted sentiment saw a significant drop, dropping from 6.75 to 0.035. Weighted sentiment measures market perception, reflecting whether participants are optimistic (bullish) or pessimistic (bearish) about the cryptocurrency.
Rising sentiment indicates increased optimism and enthusiasm about the token, while declining sentiment indicates bearish sentiment, which indicates declining confidence or negativity in the market. If this trend continues, demand for XRP could weaken, which could lead to a price drop as market interest wanes.
XRP Sentiment Weighted: $
$XRP Price Prediction: Is it time to drop below $2?
On the daily chart, XRP has shown three consecutive red candles, indicating selling pressure on the altcoin. A closer look at the chart shows that the trading volume of the cryptocurrency has decreased.
In short, the high trading volume confirms that there is more selling than buying. If this continues, the price of XRP could continue to decline. If this is verified and the inflow of XRP from exchanges decreases, the value could drop to $1.90.
XRP price analysis Daily analysis of Ripple.
In a very bearish scenario, the altcoin may drop to $1.46. However, this trend may change if the inflow of exchanges increases again. In this case, the price may rise to $2.90.
