XRP dropped to a low of $1.40 on Thursday, but rebounded a few hours later; it broke above $1.44 afterward.
Fundamentals at the time were bearish, resulting in the initial decline. A previous analysis noted that the forecast for initial jobless claims was negative. As a result, prices would decline following the release.
Nonetheless, prices rebounded after some bullish rhetoric from Iran and the US towards peace. XRP ended Thursday with a slight improvement in price.
However, data from CryptoQuant offers another reason for the hike. Binance posted a low inflow on Thursday. It was significantly lower than the outflow, suggesting that accumulation was ongoing. Aside from the exchange flow, Thursday’s increase was led by the whales. Large transactions reached 192, up almost 150 from the previous day.
There’s no guarantee that the trend will continue in the coming days. Sentiment across the crypto market is gradually turning negative. The fear and greed index indicates this shift. It dropped 1 point between Wednesday and Thursday and 20 points the next day.
Adding to the concern is that the asset is trading significantly below its established cost basis. Investors bought over 1.1 billion units at around $1.46. The bulls have since failed to sustain an uptrend it. It currently trades at a lower-density CB.
With the upward momentum slowly waning, prices may decline in the coming days. Current price movements suggest the downturn began on Friday, with the altcoin trading below its opening price. Indicators also reveal the same readings.
XRP Could Lose $1.40
XRP is currently seeing an increase in exchange inflow. It may indicate investors’ positioning to take profit. If the fundamentals remain the same, the price may plummet further in the coming days.
In hindsight, the altcoin has maintained trading above $1.40 since Tuesday. It bounced off it twice, indicating growing demand concentration. It is important to continue defending this mark as slipping below it may see the coin retrace to the previous low.
Adding to the importance of the barrier, data from Glassnode shows that the cost basis spanning $1.40 to $1.38 is not dense. If it loses the mark, prices may drop to the key CB around $1.30.
The 1-day chart agrees with this assertion, as it shows prices rebounded around $1.38 on several occasions in the last two weeks. However, if drop below the barrier, the next level with demand is $1.33.
Adding to the growing fear of further decline is the bollinger bands. The altcoin broke out last week and has since struggled to retest the upper band. With dwindling buying pressure, the asset will retest the middle band next week.
Aside from the BB, the moving average is also negative. Although still green, its histogram prints smaller candles as the gap between the 12- and 26-EMAs narrows. A negative is due next week, which may trigger further declines.
In summary, there are several bearish indications of a trend reversal in the coming days. The coming week may be significantly bearish.
In other news, Ripple Labs revealed plans to make XRP Ledger quantum-resistant by 2028. It made the decision in response to the growing threat posed by quantum computing.
