XRP Prices Heads Into a Down Trend, Users Decline 8.15% in 11 Days

XRP Prices Heads Into a Down Trend, Users Decline 8.15% in 11 Days
  • The US indices had their worst day since October.
  • The current RSI level is far from the oversold zone.

The XRP price is falling along with the crypto market this morning as a global risk-off hits markets. Ripple (XRP) is down 12% in early Asian trade.

For now, the 200-day moving average of $0.8804 is preventing a more severe decline. In the last 48 hours, cryptocurrencies have collapsed alongside Chinese equities as Evergrande, the country’s second-largest property collapses. The US indices had their worst day since October.

Bitcoin (BTC/USD) recently fell below the 200-day moving average at $41,823, further souring sentiment. The price of Ripple then briefly reached the 200 DMA at $0.8841. However, BTC has recovered $2,500 from the $40,255 low, assisting XRP in doing the same. Although still, this could impact the Ripple price.

Greedy Investors Drove XRP

However, if Bitcoin buyers emerge, the Ripple price should rise. If XRP closes above the 200-day moving average, a reversal may be underway. Until XRP clears the 100 DMA at $98.24 and trend resistance at $1.2000, it is cautious. XRP must rise above $1.2000 to be considered bullish.

XRP/USDT: Source: Trading View

Greedy investors drove XRP to a swing high of $1.41, far above the $1.35 swing high of August 15. The RSI formed a lower low during the August 15 and September 6 peaks, resulting in a bearish divergence. This barrier has been in use since early April. If this level is broken, any short-term buying pressure will be unable to reclaim it.

Also, the current RSI level is far from the oversold zone, indicating that the remittance coin has not yet bottomed. By the end of the first week of September, there were 31,316 daily active addresses. As XRP falls, so does the number of investors using the Ripple blockchain.

This metric hit a low of 28,761 on September 17, falling 8.15 percent in 11 days. As a result of the market participants’ lack of interest in the future of XRP, the price is likely to slip, leading to a downtrend. According to CoinMarketCap, XRP price today is $0.940204 USD with a 24-hour trading volume of $4,667,042,291 USD.

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A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.