On May 31, Ripple (XRP) closed below its 20-day exponential moving average (EMA) for the fourth day in a row, suggesting a continuation of its seven-day price drop. When a token trades below this crucial moving average, it signals a bearish trend, indicating that the current price is lower than the average price over the last 20 days. Investors might interpret this as a shift towards a selling market trend.

Key Data on Ripple

An analysis of important technical indicators for XRP suggests the altcoin might lose more value in the coming days. At the time of writing, key momentum indicators were below their neutral points. For instance, XRP’s relative strength index (RSI) was 46.64, and the money flow index (MFI) was 40.96. For the latest financial and business news, visit COINTURK FINANCE.

These indicators show that demand for XRP has dropped, as market participants prefer to sell their existing assets rather than buy new ones. The increased selling pressure on XRP is evident from the decline in active addresses. Data from Santiment shows that the daily active addresses using XRP’s 30-day moving average decreased by 30% over the past month.

Daily XRP Transactions

Similarly, the number of new addresses created for altcoin transactions fell by 29% during the same period. A drop in active and new addresses for a token often indicates a potential price decline. Despite the decreased demand and price for XRP, daily traders continued to make profits. XRP’s daily trading volume showed a profit/loss ratio of 1.16.

This means that for every loss-making transaction, there were 1.16 profitable transactions for XRP investors. For those looking to trade against the market, XRP’s negative market value/realized value (MVRV) ratio suggested a buying opportunity. According to Santiment’s data, XRP’s MVRV ratios for the 30-day and 365-day moving averages were -0.7% and -8.5%, respectively. This ratio compares the token’s current market price to the average price at which it was purchased.

In conclusion, the ongoing bearish trend and key technical indicators suggest that Ripple may continue to experience a decline in price. However, there are still opportunities for profit for savvy investors, particularly those looking to capitalize on the negative MVRV ratio.