Journalist
Posted:
- XRP transactions in the $100,000 to $1 million range rose, signaling a price recovery.
- The token could fall below $0.60 before a jump.
Ripple [XRP] The seven-day decline of 8.80% could be on the verge of recovery, based on indications from on-chain data. One reason for this claim, according to AMBCrypto’s analysis, was whales’ interest in the cryptocurrency.
According to the data as long asXRP transactions in the region of $1 million have been rising for several days.
The same applied to transactions worth $100,000 and more. Historically, when whale transactions increase, the price rises at a time when XRP is falling.
Source: Santiment
Never a straight line to revival
So, it may be time to pay attention to the significant changes in the XRP price pattern. To do this, AMBCrypto decided that a look from a technical perspective was necessary.
On the XRP/USD 4-hour chart, the 20-day EMA (blue) had a downside crossover below the 50 EMA (yellow).
This crossover is a bearish sign. So, XRP could fall below the $0.60 threshold.
Even more so, if the EMA position is associated with high trading volume, recording may be faster. But at the time of writing, Ripple’s trading volume was declining, indicating a decline in spot trading in the asset.
Another evaluated indicator is the Money Flow Index (MFI). At the time of writing, the MFI stood at 23.53. The MFI measures selling and buying pressure by looking at price and volume data.
An MFI value above 80 is considered overbought. When the indicator is below 20, it is called oversold. XRP’s potential recovery can also be seen in the MFI trend. Should the MFI reach 20.00 or lower, XRP could reverse its direction to the upside.
Source: TradingView
Open interest is decreasing
Furthermore, the cryptocurrency’s accumulation/distribution (A/D) had leveled off. For confirmation of the XRP upward trendaccumulation must increase. If accumulation increases, XRP could reach $0.65 in the near term.
Meanwhile, the Open Interest around the Ripple token has fallen, based on AMBCryptos Evaluation of Coinglass data.
At the time of writing, Open Interest had dropped to $605 million.
Open Interest is the amount of liquidity allocated to open positions in the futures market. When Open Interest increases, it implies an increase in market interest. 
Source: Santiment
Read Ripple [XRP] Price prediction 2023-2024
However, the drop in XRP Open Interest means traders are refraining from opening more positions.
The lack of interest may be due to uncertainty in the market. Regardless, XRP has the potential to move in the upward direction. But first there may be a decline.
