The price of Ripple (XRP), after skyrocketing 350% within 30 days, has now dropped from its peak of $2.80. This drop may be related to a decrease in XRP flow out of exchanges, according to recent data.
If this trend continues, XRP could lose further of the advantages it has recently gained.
Ripple investors are no longer HODLing in large numbers
On December 4, XRP withdrawals from exchanges were 980.65 million. As of now, it has dropped to 44.17 million, showing a difference of 936.48 million. This index tracks the number of Tokens withdrawn from exchanges.
When this index increases, it means many investors do not want to sell, leading to a possible increase in cryptocurrency prices. Conversely, a decline indicates that bullish confidence is no longer high and could lead to a decline in prices.
Considering the current price of XRP around 2.33 USD, the outflow between yesterday and now is worth 2 billion USD. Given this situation, if the outflow continues to decrease, the price of XRP may decrease.
Furthermore, according to Santiment, XRP’s Sentiment weight has decreased significantly, from 6.75 to 0.035. Sentiment Weight evaluates market sentiment, reflecting whether investors are bullish or bearish about a cryptocurrency.
An increase in sentiment means growing optimism around the token, while a decrease indicates negative sentiment, indicating cooling or negativity in the market. If this trend continues, it could reduce demand for XRP, leading to a possible price drop as market interest wanes.
XRP Price Prediction: Will It Fall Below 2 USD?
On the daily chart, XRP has appeared three consecutive red candles, signaling selling pressure on this altcoin. Additionally, the chart above shows that cryptocurrency trading volume has decreased.
In short, high volume confirms that there has been more selling than buying. If this trend sustains, XRP price may continue to decline. If confirmed along with a decrease in withdrawal flow, the price could drop to $1.90.
In an extremely negative scenario, the altcoin could drop to $1.46. However, this trend may change if withdrawals from the exchange increase again. In that case, the price could recover to $2.90.
