XRP supply on exchanges drops to 2.84 million, the lowest level since January 1.
Chaikin Money Flow for XRP is negative, indicating market weakness and possible further declines.
XRP price falls 11.67% this month despite Ripple’s legal win against the SEC.
Ripple Labs recently won a legal battle against the Securities and Exchange Commission (SEC), but this didn’t boost the price of XRP as expected. Despite the favorable decision, XRP continues to face challenges. The ongoing market crisis has driven its price down to $0.4734, marking an 11.67% decline this month.
Even before this drop, XRP wasn’t performing well, and now the situation has worsened. The XRP supply has hit its lowest point in months, and the price continues to fall.
XRP Experiences Reduced Sell-offs
The supply of XRP on exchanges has dropped to 2.84 million, worth $1.34 million at current market prices, marking the lowest level since January 1. This decrease indicates that fewer XRP tokens are being held on cryptocurrency exchanges.
Several factors might explain this trend, such as investors could be moving their tokens to hardware wallets for safety, staking them on decentralized finance (DeFi) platforms, or simply holding onto them, hoping for a future price increase.
Recently, investors have faced significant losses with their XRP holdings over the last 11 days, amounting to more than $30 million. This downturn is linked to widespread token distribution amid a market crunch, signaling a concerning trend of market capitulation.
XRP Price Analysis
XRP’s daily price performance reveals a drop in demand for the altcoin. Meanwhile, the Chaikin Money Flow (CMF), which tracks money entering and leaving the market, is currently at 0.06. A negative CMF indicates market weakness and suggests that money is exiting the market, which traders see as a sign of a possible further decline in value.
However, the Moving Average Convergence Divergence (MACD) for XRP also shows a bearish trend. The MACD line (blue) is below the signal line (orange) and the zero line, reinforcing the negative sentiment.
Despite these indicators, XRP’s recent price movements don’t indicate a strong rebound soon. As of now, XRP is trading at $0.47, reflecting a drop of 0.8% seen in the last 24 hours.
