XRP’s price has been volatile in the last few days, following a spectacular rally in November.
On-chain metrics indicate that the bulls still have control, despite the XRP correction.
Why is XRP falling?
XRP’s price is down by 25% since it reached a high of 2,90 USD in December 2024. It was trading at only $2.30 on December 5, 2018.
As XRP dropped in price, the market cap fell by 8% and slipped below TetherUSD to 4th place.
The correction follows a rally in which XRP soared over 400% after the election of Donald Trump.
This surge was also fueled by the appointment of Paul Atkins to the SEC chair, with the market gaining confidence in the prospect of an SEC that is crypto-friendly.
Traders are locking in profits and contributing to recent price declines.
The decline in Bitcoin is part of an overall correction, which has affected many altcoins. Bitcoin’s recent rise above $100,000 was a divergent event.
Despite the fact that XRP had a strong year, this drop may be a correction of the market, rather than a complete trend reversal.
The On-chain Metrics suggest a continued bullish sentiment
On-chain data shows a positive outlook for XRP, despite the price correction.
Stability of XRP funding rate is a key metric that supports bullish sentiment.
Coinglass data shows that XRP funding rates have increased to the levels of February 2024 or March 2021.
The market’s surge indicates that it isn’t overly bullish. This reduces the chance of an overheated rise, but still leaves room for growth.
XRP’s sentiment is also low compared with previous rallies. This indicates that the retail traders have not been driving this recent surge.
It is possible that current token holders have a greater confidence in the future prospects of their coin, which reduces the likelihood of significant selling off during market declines.
The on-chain indicator suggests that recent decreases may have been more of a temporary pullback than an indication of an imminent trend reversal.
The technical indicators are pointing to a bullish turn around
XRP price shows signs of upside potential from a technical perspective despite recent decline.
On the 4-hour chart a bull flag has appeared, which indicates that the bulls may continue to be bullish once the price is above $2.37.
If the pattern is resolved positively, XRP could surge to $4.83. This would be a 60% rise from its current level.
The relative strength index has fallen from the overbought condition, which could indicate a further consolidation of prices or a temporary drop.
Bulls could quickly regain control if XRP price remains above the key support levels of $2.05 or $1.68.
Technical analysis suggests that the correction could be a consolidation opportunity before another possible breakout. This is supported by strong sentiment in the market and solid technical bases.
The post on XRP On-Chain Metrics Show Bulls Still in Control Despite the Price Correction may be updated as new updates unfold
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