XRP trades in losses surpassed those in profits. XRP accumulation has declined in recent weeks.
After significant profit-taking last week, XRP traders have posted losses on their token sales, on-chain data from Santiment revealed.
How much are 1,10,100 XRPs worth today?
According to data from Santiment, an assessment of the altcoin’s ratio of on-chain transaction volume to profit to loss showed the metric logging a value of -0.084, suggesting that the transaction volume that resulted in losses was greater than the volume at which traders saw profits.
While this is not in favor of day traders, it is often taken as a signal of an impending positive price correction. Is XRP well positioned for this to happen?
Look before you jump
At the time of writing, XRP changed hands at $0.468. The token registered a 0.71% price increase in the past 24 hours, with a 48% drop in trading volume per data from CoinMarketCap.
On a daily chart, a review of the alt’s Moving Average Convergence/Divergence (MACD) indicator revealed that it was entering another bear run on June 12. This was when the MACD line intersected the trendline in a downtrend, ushering in the bears.
When the MACD line crosses the trendline in this way, it suggests that the short-term moving average is moving below the long-term moving average, indicating a possible shift to bearish momentum, followed by a price decline.
Furthermore, the Directional Movement Index (DMI) showed that the bears controlled the XRP market and have since taken control since the end of June. The negative directional index (red) rested firmly above the positive directional index (green) at the time of writing.
With the bears in control for the past few weeks, XRP accumulation has plummeted. For example, key momentum indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) were in a downward trend, suggesting that selling was better than buying with day traders.
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Interestingly, the price of XRP rested on the lower band of its Bollinger Bands indicator at the time of writing. The lower band represents a level of support, indicating that the price is approaching the bottom of its typical trading range.
This suggests that the price of XRP may have reached a point of oversold conditions or undervaluation, suggesting a possible reversal or recovery in the coming days.
This post Are XRP Traders Expecting an Uptick?
was published first on https://ambcrypto.com/are-xrp-traders-anticipating-a-rebound/