XRP is currently displaying signs of a bearish trend, with the Chaikin Money Flow (CMF) indicating a flow of liquidity exiting the market. Over the past seven days, the majority of transactions involving XRP have resulted in losses, with the daily ratio of XRP transaction volume showing a reading of 0.97.
Ripple’s XRP continues to struggle to break back into the $0.50 zone, currently trading at $0.49. Despite a 0.5% surge in the last 24 hours, the altcoin has declined by 3.8% in the past week.
Technically, uncertainty surrounds XRP’s next price movement as it hovers near its 20-day exponential moving average (EMA). This typically signifies a consolidation phase, indicating a balance between buying and selling pressures. Currently, neither buyers nor sellers have a distinct advantage as key momentum indicators approach their respective center lines. The Relative Strength Index (RSI) is sitting at 50.13, while the Money Flow Index is at 44.44.
Indicators suggest a murky future for XRP. The RSI shows neutrality, while the CMF indicates a downtrend with XRP positioned on the zero line, signaling a liquidity exit from the altcoin market. This bearish signal is further supported by Ripple releasing a significant amount of XRP from its reserves.
Investigations into the capital exit reveal that a high number of XRP transactions resulted in losses, reflected in the daily ratio of XRP transaction volume. Despite this negative sentiment, open interest in XRP’s futures market has seen a notable increase, reaching $661 million.
The rise in open interest suggests more traders are entering the market and opening new positions, predominantly long positions. This aligns with predictions that XRP may break out of its symmetrical triangle and experience a 41% surge, similar to the one witnessed in 2017.