XRP Price Risks 20% Reversal as Sellers Gain Ground

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As an analyst, I observed a significant drop in XRP‘s price, reaching as low as $2.30 on Sunday, January 5, representing a 7% decrease within a 24-hour span. The current trading data suggests that XRP is under heavy sell pressure. With this trend persisting, there’s a potential risk of double-digit declines in the upcoming week for XRP.

XRP Price Retraces 7% as Profit-Taking Begins

Over the past 24 hours, the price trend of XRP has shown a decrease in value, following an impressive beginning to the year 2025. As the global cryptocurrency market saw its fifth consecutive day of growth, investors started reallocating capital among various markets. Notably, XRP and Shiba Inu (SHIB) have faced bearish tendencies as a result.

The chart you see displays that XRP prices increased by 25% from December 30 to January 4. However, after a five-day streak of gains, signs of early profit-taking have surfaced, causing XRP’s price to drop 7% from $2.50 to $2.33 within the past day.

Given that the overall mood in the cryptocurrency market remains optimistic, the drop in XRP transaction activity hints at traders potentially shifting their profits into other investments.

CryptoQuant Data Signals Growing Sell-Side Pressure

Over the past day, the bullish excitement in the XRP market has slowed down due to the price not surpassing $2.50 on January 4. Yet, information from derivative markets indicates that aggressive sellers have stepped up their activity since January 2.

As a crypto investor, I often keep an eye on the Taker Buy/Sell ratio from CryptoQuant, which gives me insight into the balance between buy and sell orders being executed at the current market rate. When this ratio is less than 1, it suggests that there’s more selling activity happening compared to buying, indicating a bearish dominance – in other words, investors are exiting their positions faster than new buyers are entering the market at the current prices.

On Sunday, January 5, the XRP Taker Buy/Sell ratio dropped to 0.93, indicating that sell orders were more prevalent than demand during the previous three trading days. This imbalance may have contributed to the 7% price decline observed over the past 24 hours.

Should the current discrepancy between market demand and supply continue, there might be increased potential for XRP prices to experience further decreases in the upcoming week.

XRP Price Forecast: Bulls Could Regroup at $2.20 Support Level

Over the last few days, there’s been a significant drop in XRP’s price by about 7%, largely due to a wave of selling activity. The Taker Buy/Sell ratio has dropped to 0.93 as of January 5, suggesting that sell orders have been more active than buy orders during this period. This imbalance has put increased pressure on the price, causing it to trend downward.

Should the imbalance between supply and demand continue, there’s a possibility that XRP might experience additional drops in the near future.

The amount of trading is slowly going down, indicating reduced interest or activity from both the buyers and the sellers.

The RSI value currently stands at 53.69, indicating a possible further decrease in price before it nears the territory that’s considered oversold.

Looking at short-term predictions for XRP prices, the nearest strong support can be found around $2.27, coinciding with the lower boundary of the Bollinger Band. If XRP falls beneath this crucial support level, it might trigger a reversal trend that could potentially take the price down to $1.85.

Positively, the latest peak at $2.50, coinciding with the midpoint of the Bollinger Band, currently serves as an immediate barrier to further increase.

A sustained recovery above this level could pave the way for XRP to retake the $3 mark.

If XRP recovers from around $2.20 and buyers take control, the price might head back towards $2.35. Surpassing $2.52 would suggest a shift in market sentiment, effectively negating the bearish perspective. On the other hand, if selling pressure persists and XRP fails to hold its position above $2.20, there’s potential for a swift drop to approximately $1.85.

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2025-01-05 15:08