On December 2, the price of XRP rose to a six-year high of $2.72, making it one of the altcoins that outperformed Bitcoin (BTC) this quarter. This development also happened at the same time that XRP’s DEX trading volume spiked to $61 million, causing speculation that the token could lead the altcoin season.
While it managed to hold on to gains at one point, the situation in the past 24 hours has changed, with XRP price currently trading at $2.21. This is why it may be difficult for this altcoin to reach a new peak before 2024 ends.
Ledger DEX transactions decrease amid altcoin downturn
Over the past 90 days, XRP price has increased 282%, marking an outstanding performance among altcoins. However, the Token’s current momentum has stalled, with a 6.09% drop recorded in the past 24 hours.
The Altcoin Season Index, which validates an altcoin season if 75% of the top 50 non-BTC coins surpass Bitcoin, has highlighted XRP as one of the top contributors alongside Hedera (HBAR) and Bitget Token (BGB ) during this period. As a result, the index recently peaked at 78, indicating an undeniable altcoin season.
However, with recent price drops across many altcoins, including XRP, the Altcoin Season Index has dropped to 47, reflecting a shift towards neutral sentiment. If this momentum continues to weaken, XRP price is at risk of falling below 2 USD.
XRP DEX volume is another indicator that supports this long-term decline. DEX volume measures the value of cryptocurrencies traded on the XRP Ledger (XRPL) over a period of time.
For those unfamiliar, XRPL is the project’s decentralized public blockchain used to facilitate XRP trading and instant settlement of various currencies. As DEX volume increases, it shows increased demand for the Token. On the contrary, a decreasing DEX volume indicates the opposite.
As mentioned, XRP DEX volume increased to 61.01 million USD on December 2. Today, it has decreased to 2.66 million USD, indicating that the value of the traded token has decreased by approximately 58 million USD. If this situation continues, XRP price could experience prolonged downward pressure.
XRP Price Prediction: No all-time high in sight
On the XRP/USD 4-hour chart, the altcoin has faced a death cross. A death cross occurs when the longer Exponential Moving Average (EMA) slips below the shorter one, which is a bearish signal.
The opposite is called a golden cross, which involves the crossing of the longer EMA over the shorter one. As seen below, the 50 EMA (yellow) has risen above the 20 EMA (blue) as price has also fallen below these indicators.
If this trend continues, the value of XRP could drop to $1.75. However, if sentiment turns optimistic and the EMAs form a golden cross, the trend could reverse. If that happens, XRP price could skyrocket to $2.90.
