XRP Sellers Gain Strength as Retail Activity Slows Down

Ripple (XRP) Faces Downward Pressure Amid Market Uncertainty

Ripple (XRP) is currently trading lower, below $2.18 at the time of writing on Friday. This downward movement is part of a broader sell-off affecting major cryptocurrencies, including Bitcoin (BTC), which remains above $100,000, and Ethereum (ETH), trading below $3,250.

Multiple attempts to sustain a price recovery have failed, leading to losses. The prevailing risk-averse sentiment can be attributed to macroeconomic uncertainty stemming from the ongoing US government shutdown, sluggish retail activity, and a lack of significant price catalysts within the cryptocurrency ecosystem.

XRP Retail Activity Slows as Sellers Tighten Grip

XRP’s retail activity remains subdued following the aggressive sell-off on October 10th, which marked the largest single-day liquidation event in the cryptocurrency market. Approximately $19 billion was wiped out, leaving traders with losses and investors feeling discouraged.

The neutral zone, as indicated by the CryptoQuant chart, suggests that retail investors are holding back, waiting for improved sentiment in the broader cryptocurrency market. However, these neutral conditions could also signal that XRP is nearing a potential bottom, presenting opportunities to buy the dip.

Meanwhile, whale transactions to exchanges (Binance) have significantly decreased in the past week, following several spikes in October. Approximately 800 such transactions were recorded on Friday, compared to roughly 49,000 on October 25th and 44,000 on October 11th.

Investors typically transfer assets to exchanges to trade or sell. Therefore, spikes in whale transactions to exchanges often precede increased volatility. Fewer whales sending XRP to exchanges reduces potential selling pressure, potentially paving the way for a steady recovery.

Technical Outlook: XRP Bears Maintain Control

XRP has given back intraday gains after reaching a high of $2.23 on Friday, resulting in a prolonged decline below $2.18. The daily chart indicates that sellers have the upper hand, particularly with the Relative Strength Index (RSI) falling to 35, down from 42 on Wednesday.

Investors are likely to remain bearish heading into the weekend, citing a sell signal from the Moving Average Convergence Divergence (MACD) indicator since Tuesday. Sentiment may remain bearish as long as the blue line stays below the red signal line and the indicator continues to decline.

A Death Cross, a bearish pattern that occurs when a short-term moving average crosses below a long-term one, is looming. On the daily chart, the 50-day EMA at $2.58 is poised to cross below the 200-day EMA, reinforcing the bearish outlook.

However, if bulls seek exposure by buying the dip, XRP could resume its upward trend, targeting highs above the confluence of the 200-day and 50-day EMAs at $2.58.