XRP Price Drops 10% Amid Network Activity Decline, Recovery Forecasted

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XRP Price Drops by 10% in 7 Days: The Reasons Behind It

In the last seven days, the price for XRP has decreased by 10%. A decline in network activity and a general lack of user interest seem to be the main reasons for this.

XRP Network Activity Decreases

The past 30 days have not been the best for XRP in terms of network activity. Several key metrics showed a decrease. The number of daily active addresses, which began to steadily decline after a spike on December 30, is one example. The number of transactions and the transaction volume on the blockchain also decreased during this period. This indicates a lower activity in the network.

The Price of XRP Shares the Same Fate

The price of XRP also recorded a double-digit decline in the last month. In the last seven days alone, the value of the token dropped by almost 10%. At the time of publication, XRP’s trading price was at $0.5139 with a market capitalization of over $27.9 billion.

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It’s interesting to note that while the price of the token plummeted, the whales used this opportunity to buy the token. A few days ago, it was reported that the number of whale transactions for XRP surged.

Positive Indicators Despite Price Decline

Despite the price decline, some market indicators point to a possible trend reversal. For instance, XRP’s Money Flow Index (MFI) was on the verge of entering the oversold zone, which could increase buying pressure. Also, the price of XRP touched the lower boundary of the Bollinger Bands, indicating a potential price recovery before the token’s price drops to $0.049.

Surprisingly, despite the bearish price behaviour, the sentiment around XRP was positive. The weighted sentiment for XRP moved upwards, which means that the bullish sentiment around the token became dominant. The social volume also remained high in the last week, reflecting its popularity in the crypto space.

Whether XRP manages to kick-start a bull rally before it reaches its support zone remains to be seen.

Sources: Santiment, Hyblock Capital, TradingView

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Isabella Brown

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Online Gambling, Greece and my dog Gringo are my three favorite things in my life. Before working for Kryptocasinos.com I was leading the content team of an iGaming Online magazine where I was focused on researching casinos, their licenses and the connection between the members of the industry.
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Last update: 19. February 2024

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