In the past few days, XRP, Ripple Labs’ native token, has been struggling to gain traction, and data suggests that it is likely to continue to struggle in the coming days. This negative speculation is based on recent activity by investors and long-term shareholders amid ongoing market uncertainty.
Bearish on-chain metrics
Data from on-chain analytics company Quinglass Real-time inflow and outflow metrics reveal that exchanges saw a significant $62 million worth of XRP inflow over the past 48 hours. This large influx of XRP tokens to exchanges indicates a potential dump, which could lead to lower prices and increased selling pressure.
In addition to the heavy flow, the buy/sell ratio, which measures trader sentiment, is currently at 0.92, indicating a bearish outlook with short positions dominating.
However, this is occurring during a period where the asset has witnessed sustained price consolidation over the past six days.
XRP technical analysis and price prediction
According to the technical analysis of experts, XRP looks neutral until it breaks out of the ongoing consolidation between the $2.90 and $3.30 levels.
Based on the recent price momentum, if XRP breaks the consolidation and closes a daily candle above the $3.32 level, there is a strong possibility that it will rise by 32% to reach the $4.50 level in the coming days. Conversely, if XRP breaks out of the consolidation and closes a daily candle below the $2.85 level, it will likely fall by 10% to reach the $2.58 level in the future.
On the positive side, the Relative Strength Index (RSI), currently at 65, indicates that XRP is approaching overbought levels but still has room for further upward momentum.
Current price momentum
Despite the bearish outlook, XRP is currently trading near $3.25 and has seen a price rise of 1.60% over the past 24 hours. However, during the same period trading volume decreased by 35%, indicating lower participation by traders and investors compared to the previous day.
