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Bearish Trends Impacting XRP
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Amidst the prevailing bearish forces, XRP has witnessed a shift in its market landscape, tilting towards a downward trajectory. This shift has caused several pivotal metrics to experience a decline. Among these, the Total Realized Capitalization by Age has notably decreased from its former heights.
Decline in XRP’s Realized Capitalization
The market indicators for XRP reveal a deepening weakness, as evidenced by the downward trend in its total Realized Capitalization. This decline is part of a broader wave of volatility affecting the cryptocurrency market at large, with XRP’s price movements mirroring the growing uncertainty among investors.
Renowned financial analytics and blockchain data platform, Glassnode, has reported this decline in the total realized cap, pointing to increased selling pressure and diminishing investor confidence. Given the ongoing volatility and the decrease in realized cap, XRP’s price might experience an extended correction phase in the near future.
Before this decline, Glassnode observed a significant surge in the realized cap, coinciding with a massive spike in XRP’s price in February. This surge was fueled by news of Ripple’s legal victory against the United States Securities and Exchange Commission (SEC). The realized cap almost doubled, increasing from $30.1 billion to $64.2 billion, largely driven by new investor inflows, which have since tapered off.
The cooling of XRP’s realized capitalization after such significant growth highlights market dynamics shifting post the initial retail-driven enthusiasm. According to the New Investor Realized Cap Share metric, investors who have held for more than six months now account for approximately 62.8% of the realized cap, up from 23%. This indicates robust retail participation, although it also poses risks given the high-cost bases of many new investors.
Further analysis by Glassnode into XRP’s Profit/Loss Ratio reveals a steady decline since January of this year, suggesting that the majority of holders are currently at a loss. This is often seen as a signal of weakened conviction, with market conditions appearing fragile and weighted heavily with new investors.
Prospects for XRP Reaching the $3.30 Mark
Despite the apparent loss of bullish momentum, with XRP recently falling by nearly 50% from its all-time high, there remains potential for recovery. Crypto analyst and trader Javon Marks anticipates a possible rebound to the $3.30 level.
Marks notes that XRP’s MACD (Moving Average Convergence Divergence) is nearing a critical juncture, alongside maintaining a key regular bullish divergence. This positive outlook suggests that bulls might reassert themselves, potentially driving prices upward toward the $3.30 mark and beyond.
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