As the cryptocurrency market rebounds, XRP struggles to regain momentum. On-chain and technical indicators reveal weaknesses, with focus on the potential approval of an XRP ETF. Here are five reasons behind this recovery delay.
Total XRP reserves held on cryptocurrency exchanges continue to rise, indicating increased selling pressure and volatility. For example, XRP reserves on Binance have increased from 2.92 billion to 3.6 billion. This has led to a price drop of more than 25% after reaching an all-time high of $3.65.
Whale flows have turned strongly negative as the price faced renewed distribution pressure. 30-day data shows massive selling from XRP whales after realizing substantial profits during the recent rally.
XRP’s open interest continues to decrease due to negative sentiment among traders and uncertainty surrounding spot ETF approval. Several issuers have filed applications, but the SEC has pushed back its final decision until October.
Various indicators and patterns currently signal weakness for XRP. The price is trading substantially below the 50-day moving average at $3.09, and the RSI at 43 indicates potential for further downside.
Negative sentiment in the cryptocurrency market has also impacted the rally. Concerns about inflation in the United States and Fed decisions are playing a crucial role.
Although the Ripple price has rebounded, these key factors explain why its recovery appears delayed. Investors should remain attentive to these dynamics to make informed decisions during this period of uncertainty.
XRP is poised to begin an increase of +16 to +25% in the coming weeks. Additionally, its double bottom at $2.71. A demand zone provides another confluence toward a price surge.
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