What to Know:
- XRP has entered a potential “good buy” zone amid a broader crypto market sell-off.
- On-chain data suggests increased trading volumes and negative average returns for XRP holders, signaling a possible buying opportunity.
- Market sentiment has hit “extreme fear,” potentially increasing the chances of a relief rally for XRP and other cryptocurrencies.
XRP is currently navigating a market-wide downturn, experiencing a seven-day decline that bottomed out at $2.10. This dip aligns with a broader trend of waning risk sentiment and technically driven trading behavior affecting major cryptocurrencies. Despite the price drop, on-chain data indicates that XRP may be entering a favorable accumulation phase.
XRP’s trading volume has surged by 71% in the last 24 hours, reaching $7.4 billion, suggesting heightened trader activity. Data indicates that XRP is now in a “good buy” zone, potentially attracting investors looking for discounted entry points. The recent downturn has pushed XRP wallets active in the past 30 days to an average performance of -10.2%, according to on-chain analytics firm Santiment.
🤕 The vast majority of cryptocurrencies are now flashing extreme pain for average trading returns. Wallets active in the past 30 days have an average performance of:
📌 Cardano $ADA: -19.7% (Extreme Buy Zone)
📌Chainlink $LINK: -16.8% (Extreme Buy Zone)
📌Ethereum $ETH: -15.4… pic.twitter.com/l0mUrDWOzm
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The broader market sentiment reflects “extreme fear” amid increased volatility, with the Fear & Greed Index reaching levels not seen since July 2022. This level of fear often precedes a relief rally, presenting opportunities for strategic investors. Should the market rebound, XRP may encounter resistance at $2.50 and $2.63, coinciding with the daily MA 50 and 200, respectively.
As XRP navigates the current market conditions, potential investors should monitor key support and resistance levels. The convergence of on-chain data, increased trading volumes, and “extreme fear” sentiment suggests that XRP may be poised for a recovery. Keeping an eye on Bitcoin’s price action and any regulatory developments will also be crucial for making informed decisions in the crypto market.
Source: Original article
