XRP Price Analysis: Downward Trend Confirmed as XRP Breaks Below Key Moving Average

Ripple's [XRP] price has trended downward in the last week. At $0.5 at press time, the token's value dropped by 8% in the past seven days

Ripple’s [XRP] token has seen a downturn in the past week, with its price dropping by 8%. At press time, XRP was trading at $0.5, having seen a decline in its value over the past seven days.

According to data from CoinMarketCap, this drop caused XRP to fall below its 20-day Exponential Moving Average (EMA) on 7 June. This key moving average, highlighted by AMBCrypto, represents the average price of XRP over the last 20 days.

When an asset’s price falls below this level, it indicates that the asset is trading at a level lower than its average price over the last 20 days. This signals a decline in buying pressure and an increase in token sell-offs, suggesting a shift in sentiment from bullish to bearish.

This decline in futures open interest was further evidenced by XRP’s futures open interest, which stood at $525.57 million at the time of writing. This figure had decreased by 20% since 6 June, according to data from Coinglass.

XRP’s futures open interest tracks its outstanding futures contracts or positions that have not been closed or settled. A decline in futures open interest, as seen here, could indicate a spike in the number of market participants exiting the market without opening new positions.

XRP selling momentum gathers steam

XRP’s Aroon Down Line, indicated by the blue line, was at 64% at the time of press, highlighting the strength of the current downtrend.

This technical indicator helps identify an asset’s trend strength and potential price reversal points. When the Down Line is close to 100%, it suggests that the downtrend is strong and that the most recent low was reached relatively recently.

Moreover, XRP’s key momentum indicators were positioned below their respective neutral lines at press time. The token’s Relative Strength Index (RSI) was at 35.12, while its Money Flow Index (MFI) stood at 37.87.

At these levels, the momentum indicators showed that XRP traders were favoring sell-offs over accumulating new tokens.

Additionally, XRP’s Directional Index (DMI) revealed that its positive directional index (green) was below its negative index (red) at the time of writing.

An asset’s DMI measures the strength and direction of a market trend. When the positive index crosses below the negative index, it confirms that the market is in a downtrend, with selling pressure surpassing buying pressure.

Realistic or not, here’s XRP’s market cap in BTC terms

News source：https://www.kdj.com/cryptocurrencies-news/articles/xrp-price-analysis-downward-trend-confirmed-xrp-breaks-key-moving-average.html

The above is the detailed content of XRP Price Analysis: Downward Trend Confirmed as XRP Breaks Below Key Moving Average. For more information, please follow other related articles on the PHP Chinese website!