XRP has lost 15% in 24 hours as traders’ positions turn bearish amid rising selling pressure.
The decline has invalidated the previous bullish pattern that hinted at a new all-time high.
With rising bearish momentum, XRP price risks plummeting below the $2.06 support.
The XRP price has fallen to $2.41, a level it last reached on Jan. 11. A few days back, the altcoin showed readiness to hit a new all-time high.
But despite several attempts, the token’s price failed to hit that landmark as it continues amid uncertainty in the market. With talks of an impending bear market rising, the question remains—can XRP beat the odds and regain its bullish momentum?
According to Coinglass, XRP Spot Inflow/Outflow was over $200 million on Jan. 16. Around that period, XRP price surged to $3.30 and exhibited signs of climbing as high as $4.
Typically, a rise in spot inflow indicates rising demand, which is bullish for price. However, as of Feb. 2, XRP spot outflow was $100 million. The rise in spot outflow indicates selling pressure around the altcoin.
As a result, XRP’s price has plummeted by 15% in the last 24 hours. It appears that XRP’s price is unlikely to attract increased demand as the broader market condition remains hawkish amid rising global economic unrest.
Should this be the case and XRP continues to see an increase in outflows, the price might experience a further correction.
Further, it appears that traders also share a similar sentiment due to the position of the funding rate.
When funding is positive, the perpetual contract price trades above the spot price, meaning long positions pay funding while short positions receive it. This position indicates bullish sentiment.
On the other hand, negative funding indicates that the perp price trades below the index price, causing short positions to pay funding while long positions receive it.
Since it is the latter for XRP, it indicates that shorts are dominant, and the broader sentiment around the token is bearish.
If sustained, this could lead to low demand for XRP contracts in the market, potentially lowering the price.
XRP Bullish Setup Collapses
On the daily chart, XRP formed a bullish pennant up until Friday, Jan. 31, indicating that the altcoin could rally toward $4.
But the token dropped below the support line over the weekend at $2.95. This decline invalidated this bullish prediction and aligned with CCN’s previous analysis, which suggested a fall below $3.
As of this writing, the Moving Average Convergence Divergence (MACD) is in the negative region. This drop indicates that the momentum around is bearish.
With the increasing selling pressure, XRP’s price might face another downturn as the underlying support at $2.41 appears weak.
If bulls fail to defend this region, then the token might decline to $2.06. The value might drop to $1.54 in a highly bearish market condition.
However, if XRP sees an uptick in inflow, this forecast might be rendered null and void. In that situation, the altcoin’s price might climb to $3.40.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
