The price of XRP experienced a significant drop of over 11% in the last 24 hours, raising concerns among investors about the future trajectory of the cryptocurrency. Market indicators initially hinted at a possible reversal of the bearish trend, but the ongoing corrections and lack of recovery in Ripple’s XRP price point towards further challenges ahead. The failure of XRP to test a long-term bull pattern and its decline below $0.5 indicate a potential for additional price declines in the near future.
Analysts have noted a series of bearish metrics for XRP, including a sharp decline in the token’s MVRV ratio and an increasing NVT ratio, suggesting that XRP may be overvalued. The daily on-chain transaction volume also saw a significant spike in losses, attributed to the broader market crash impacting XRP’s performance. Despite these negative indicators, there are some positive signs, such as a drop in Open Interest and Funding Rate, which could potentially lead to a trend reversal and price recovery in the coming days.
However, the global geopolitical instability, particularly the conflict in the Middle East, presents a significant external factor that could influence XRP’s price movement in the short term. Hyblock Capital’s data indicates support levels for XRP around $0.46, with the possibility of a bull rally if this level holds. However, a breach of this support level could lead XRP’s price to plummet further to $0.42, highlighting the uncertainty surrounding the cryptocurrency’s future performance amidst ongoing market volatility.