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XRP Price at Risk as Ripple Unlocks 1 Billion Tokens

2 mins
Updated by Daria Krasnova
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In Brief

  • Ripple unlocked 1 billion XRP, triggering a bearish divergence with a 1% price drop and a surge in trading volume.
  • Technical indicators, including RSI and Parabolic SAR, suggest continued sell-off and a potential further decline.
  • If the downtrend holds, XRP's price could fall to $0.52 or lower, though a market shift might drive it up to $0.56.
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On Sunday, Ripple unlocked 1 billion XRP tokens in three phases, releasing 500 million, 200 million, and 300 million XRP, totaling over $560 million at current market prices.

XRP, currently trading at $0.54, has seen a 1% decline in the past 24 hours. However, the 78% surge in trading volume during this period suggests potential market volatility or upcoming challenges.

Ripple is Not Ready for Any Short-Term Rally

XRP’s trading volume has reached $851 million over the past 24 hours, with a negative divergence forming as its price drops while volume spikes. This divergence indicates increasing selling pressure and suggests the asset’s price may continue to decline

Typically, when trading volume rises as the price falls, it signals that more traders are actively selling, reinforcing the bearish trend.

XRP Price and Trading Volume.
XRP Price and Trading Volume. Source: Santiment

Supporting this, XRP’s Relative Strength Index (RSI) is in a downtrend and currently sits below the neutral 50 mark at 45.23. This suggests that market participants are favoring selling over buying, adding to the bearish sentiment.

Read more: XRP ETF Explained: What It Is and How It Works

xrp rsi
XRP Relative Strength Index. Source: Santiment

XRP Price Prediction: The Bears Have Overpowered the Bulls

XRP’s 12-hour chart supports the bearish outlook. The Parabolic Stop and Reverse (SAR) indicator shows its dots above the current price, signaling a potential ongoing decline. This indicator typically suggests that the asset’s price may continue to fall.

Additionally, XRP’s Aroon Down Line at 92.86% signals that this downtrend is strong. The Aroon indicator also identifies an asset’s trend strength and potential reversal points. When the Down Line is close to 100, the downtrend is strong, and the most recent low was reached relatively recently.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

xrp price prediction
XRP Price Analysis. Source: TradingView

If the trends continues, XRP could drop 5% to $0.52. Failing to find buying support at that level could push the price further down to $0.46. However, if demand increases, XRP could rise to $0.56.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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