The price of $XRP is still below the $1.90 level, with the Relative Strength Index (RSI) declining to negative levels, reflecting a state of market pressure.
XRP network activity has decreased: The XRP network recorded an average of 3,440 new addresses, which represents a significant decline in activity compared to previous months. The value of addresses holding more than 100,000 XRP tokens has also decreased to $104 billion, at a time when whales are increasingly reducing their risks.
Ongoing Challenges in the Cryptocurrency Market: Amid the increasing pressures faced by the cryptocurrency market, the price of XRP fell below $1.90 on Tuesday. On Monday, exchange-traded funds (ETFs) related to XRP saw cash inflows of around $44 million, up from $13 million on Friday, bringing net inflows to $1.12 billion and net assets to $1.25 billion.
Decrease in Activity and Value: Regarding activity on the XRP Ledger (XRPL), the average number of new addresses recorded 3,440 addresses on Monday, a noticeable drop compared to 4,501 addresses on December 1 and 13,500 addresses on November 11. According to the supply distribution index, the value of balances in addresses holding more than 100,000 XRP tokens has decreased to $104 billion, compared to $106 billion on Sunday and $108 billion on December 1.
Decline in XRP Value: In the chart below from Glassnode, it is clear that the average value of this group of investors has decreased from $129 billion on October 10 to $91 billion on July 21. After reaching its peak at $3.66 on July 22, the price of XRP began to gradually decline, until it reached $1.25 in October following a market crash.
Technical Indicators and Analysis: The price of XRP is trading at $1.87 on Tuesday, which is below the exponential moving averages (EMA) for the 50, 100, and 200-day periods, which are valued at $2.12, $2.31, and $2.40 respectively. This reflects the continued dominance of sellers in the market. The relative strength index (RSI) has also dropped to 39, reinforcing the impression that the price may continue to decline below the 40 level. If the decline persists, it may reach the 30 level, putting the market in the oversold territory.
Future Outlook: If the price can close above the 50-day exponential moving average at $2.12, this may open the way to the 100-day and 200-day exponential moving averages at $2.31 and $2.40 respectively. If XRP fails to reclaim these levels, the downward trend may continue. Furthermore, if the MACD indicator declines again, the market may experience increased selling pressure.
