XRP cannot start significant growth and break through the key level of resistance. Despite the attempts to recover, Ripple cannot achieve progress above $ 2.56.
A sharp decrease in the speed of the XRP coins exacerbates the situation, indicating the weak activity of Ripple investors and growing fears in the market.
Interest in Ripple falls
The intensity of the XRP tokens has sharply decreased. The speed of circulation fell to a 5-year minimum. This indicator monitors the frequency of transactions with the XRP, and it has not dropped so low since January 2020. Its decrease often indicates the indecision of investors, since weak activity reflects the lack of confidence in the market.
This is a negative signal for the Ripple project token. He shows that holders do not move their assets. Probably, investors do not want to trade or interact with an asset. The lack of significant transactional activity also means that XRP is unlikely to get out of the current range without changing market sentiments.
Technical indicators also reflect the general mood in the market. The cash flows of Chaikin Chaikin Money Flow (CMF) fell to a four -month minimum, remaining below the zero mark and pointing to the bear’s mood.
This metric measures the movement of cash flows entering the asset and leaving it. Positive values ​​say that buyers invest capital to maintain price growth. Meanwhile, negative indicators indicate that the initiative is on the side of sellers, and liquidity leaves the asset.
The negative value of CMF indicates the absence of purchasing interest. Investors are in no hurry to invest in XRP in the current conditions. This may complicate the restoration of the XRP, complicating its return to growth in the near future.
Will XRP be able to recover
The price cannot overcome the important level of resistance by $ 2.56. For a long time it remains a serious barrier to altcoin. Without a breakthrough above $ 2.56 sustainable growth, XRP should not be expected.
Given the current market situation and reducing activity, in the near future, Ripple is unlikely to take this barrier. Instead, a rollback to $ 2.27 or even to $ 2.14 is possible. This can extend the consolidation phase and partially level the recent increase in prices.
To change the current descending trend, the asset must be overcome $ 2.56 and stay above it. If this happens, the price can rise to $ 3.00. This will help partially play the losses incurred earlier this year. However, this will require a significant change in the mood of investors and improving the general situation in the market.
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Source: Cryptocurrency
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