The price of XRP coin recovered with the general crypto currency market after days of decrease. The decline caused concerns about the tariffs of customs of Canada, Mexico and China, which Donald Trump first announced on February 1st. However, when Trump agreed to postpone 25 %customs duties for Canada and Mexico for 30 days, market sensitivity healed and caused traders to continue to accumulate. Crypto analyst Abody Oladokun says XRP’s rally may be short -lived.
Metriks point to decline for XRP Coin!
The data show that the last increase is not due to strong demand for the subcoin itself. Therefore, this increases concerns about the sustainability of the rally. One of these indicators is token’s process volume that falls within the last 24 hours. The transaction volume, which reached $ 22.39 billion during the article, decreased by 22 %during this period. As the price of an asset rises, the process volume decreases and indicates a weak purchase momentum due to the active price of fewer investors. This makes the rally inevitable by pointing to a strong lack of demand and increases the risk of reversing the price.
XRP price and transaction volume. Source: centimeterIn addition, the XRP’s negative power balance (BOP) decrease pressure continues to be dominant. This value, which was -0.57 during the article, reflects the ongoing decline in the XRP despite the price increase. The BOP indicator measures the power of buyers against sellers by analyzing price movements within a certain period. As in XRP, when the BOP is negative, it indicates that sales pressure is dominant. This indicates that the decline tendency and the possibility of reversing the trend is higher.
XRP BOP. Source: TradingViewXRP Price Estimation: Will it protect your last earnings?
During the summer, the XRP Coin was traded for $ 2,57. This represents an increase of 45 %from $ 1,77, the lowest level of Monday. When the general market rally decreases, the XRP CoIN may lose its latest earnings if the demand remains low. In this scenario, the value may drop to $ 2,13. If the bulls do not maintain support at this level, the price of the XRP may decrease below the $ 2 price zone to be traded at the last November, which is the low level of $ 1.48.
XRP Price Analysis. Source: TradingViewOn the other hand, a revival in the XRP Coin request will invalidate this decline. In this case, the token’s price can climb to $ 2.94.
The opinions and estimates in the article belong to the analyst and are not definitely investment advice. Kriptokoin.comWe recommend that you do your own research before investing.
