The digital currency XRP, often nicknamed the ‘zombie token’, is drawing scrutiny due to its association with less reputable blockchains. Despite this, XRP remains dynamic, presenting potential high returns that keep attracting investors.
An analysis of exchange data indicates a significant amount of XRP has been withdrawn from exchanges, and on April 27, the outflow of XRP surpassed the inflow, suggesting a potential shift in holder perception. If this trend continues, it could flag a depletion of XRP within exchanges, impacting coin volatility as availability decreases.
This reduction in inflow and outflow potentially signals bullish sentiment among investors, or a redistribution of funds among major wallet owners. The decrease in XRP flow on exchanges implies a reduction in selling pressure, which theoretically could drive up the price over time.
However, price patterns for XRP indicate a decline since April 27 from $0.52 to about $0.51, and a bearish pattern is observed in the Relative Strength Index (RSI) from April 11. Further chart analysis reveals a negative drift in the Moving Average Convergence Divergence (MACD) histogram.
XRP trading patterns hint at prospective growth
As this bearish scenario continues, XRP may not find strong support until the $0.46 price range.
Sentiment for XRP remains low with a funding rate of approximately 0.0092%, indicating buyer dominance but slow trading activity. Open interest stands at around $535M, demonstrating limited trading movement. Yet, XRP’s market value has remained relatively steady, suggesting potential for future growth.
XRP’s correlation with other cryptocurrencies has been fluctuating, suggesting an erratic market trend. The present market situation exhibits a neutral outlook for XRP. Hence, potential investors are advised to closely monitor market indicators before making investment decisions.
Even with its controversial reputation, substantial quantities of XRP are being moved away from exchanges, making the future impact of this trend on the token unclear.
