- There have been more XRP sales since its price increased.
- XRP has maintained the $0.53 price range despite declines.
Ripple’s XRP experienced a rise alongside the market recently, but data indicates that it has struggled to sustain this upward trend. The positive momentum has been relatively weak due to sellers outnumbering buyers.
If the current trend persists, the gains XRP achieved might be erased.
Sellers nibbling off XRP gains
On 20th May, XRP experienced a notable 5.50% increase in value, rising from around $0.50 to $0.53. This marked a positive breakout from its previous sideways trend and represented the largest single-day increase for the month.
The Relative Strength Index (RSI) reflected this shift, moving above the neutral line after the price surge, signaling a transition into a bullish trend.
Source: TradingView
However, according to AMBCrypto’s analysis, XRP struggled to sustain this positive momentum. By the end of trading on 21st May, the price experienced a slight decline but remained within the $0.53 range.
As of the current writing, there has been another minor decline, yet the price has still held steady at $0.53. Despite these fluctuations, the RSI has continued to stay above the neutral line, indicating the maintenance of the bullish trend.
Additionally, a surge in volume was observed on 21st May, which could impact XRP’s future price movements.
Negative XRP price prediction
A noticeable observation on the price chart was the surge in volume on 21st May. However, upon analysis, it became evident that sellers predominantly drove this increased volume.
Data from Santiment indicated that the volume rose to approximately $2.19 billion on 21st May, marking the highest volume seen in over a month and coinciding with a price increase.
Despite the price rise, the majority of the volume appeared to originate from sellers capitalizing on the uptrend.
Source: Santiment
This development casts a shadow on XRP’s price prediction, suggesting a potential future decline in price. As of the current writing, the volume stands at about $1.7 billion, with indications that sellers continue to dominate.
Realistic or not, here’s XRP market cap in BTC’s terms
Traders stay positive
As of the current moment, data from Coinglass indicated that sentiment surrounding XRP remained positive. Analysis of the funding rate revealed that it remained above zero, standing at approximately 0.013% at the time of this writing.
This suggests that there are more buyers than sellers on the derivative side, providing Ripple an opportunity to maintain a positive price trajectory.