XRP continues its downward trend, trading below the key support of $2.18 this Friday. The correction occurs amid a broader crypto market sell-off. Data from CryptoQuant suggests that XRP selling pressure from large investors (whales) has decreased, although retail sentiment remains neutral.
On-chain data from CryptoQuant shows a notable slowdown in whale activity in November. Whale-to-exchange transactions, specifically to Binance, have dropped dramatically. Only about 800 transactions were recorded on Friday, a much lower figure than the peaks of 49,000 and 44,000 seen in October.
On the other hand, XRP retail activity remains in the neutral zone. This indicates that smaller investors have retreated to the sidelines. They are waiting for market sentiment to improve. This neutrality could also suggest that XRP is approaching a potential bottom, presenting buying opportunities.
The current market weakness is not exclusive to XRP. Bitcoin (BTC) is struggling to stay above $100,000, and Ethereum (ETH) is trading below $3,250. This macroeconomic uncertainty, compounded by the extended United States government shutdown, has affected confidence. Furthermore, the lack of significant price catalysts within the ecosystem has left investors demoralized.
Can XRP Avoid a Technical “Death Cross”?
From a technical perspective, sellers appear to be in control. The Relative Strength Index (RSI) has fallen to 35, down from 42 on Wednesday. Likewise, the MACD (Moving Average Convergence Divergence) indicator has shown a clear sell signal since Tuesday.
Analysis of the daily chart reveals a significant bearish threat. The 50-day Exponential Moving Average (EMA) at $2.58 is on the verge of crossing below the 200-day EMA. This pattern, known as a “Death Cross,” would reinforce the bearish outlook for the asset’s economy.
Despite the bearish outlook, the reduction in XRP selling pressure from whales is a mitigating factor. If bulls decide to take advantage of the dip and “buy the dip,” the asset could attempt a recovery. The immediate bullish target would be to overcome the confluence of the 50-day and 200-day EMAs at $2.58. However, the prevailing sentiment remains cautious heading into the weekend.
