XRP is currently exhibiting bearish signals as the Chaikin Money Flow (CMF) indicates a withdrawal of liquidity from the market. In the past seven days, the majority of transactions involving XRP have resulted in losses, with a daily ratio of XRP transaction volume showing a reading of 0.97.
Despite efforts to break back into the $0.50 zone, Ripple’s XRP continues to struggle. At the moment, the altcoin is trading at $0.49, experiencing a 0.5% surge in the last 24 hours but a 3.8% decline over the past week.
Technically, uncertainty surrounds XRP’s next price movement as it hovers close to its 20-day exponential moving average (EMA). This situation is often seen as a consolidation phase, indicating a balance between buying and selling pressures. Currently, key momentum indicators are nearing their center lines, with the Relative Strength Index (RSI) at 50.13 and the Money Flow Index at 44.44.
Indicators are painting a blurry future for XRP. The RSI suggests neutrality, while the CMF shows a downtrend, indicating a liquidity exit from the altcoin market. This bearish sentiment is further supported by Ripple’s release of 150 million XRP ($78 million) from its reserves, alongside a significant transfer of 410,239,560 XRP ($213 million) to various exchanges within 24 hours.
The capital exit from XRP can be attributed to most transactions resulting in losses last week, with a daily ratio of XRP transaction volume in profit to loss standing at 0.97. Despite this negative trend, XRP’s futures market has seen a 7% increase in open interest, reaching $661 million since the beginning of the month. This rise in open interest indicates more traders entering the market and opening new positions.
Interestingly, the XRP funding rate suggests that traders are predominantly opening long positions, indicating optimism for the coin’s future growth. This aligns with predictions from Egrag Crypto, forecasting a potential 41% surge for XRP, reminiscent of the coin’s 2017 performance.