XRP Faces Downward Pressure as Technical Indicators Signal Bearish

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XRP currently faces a challenging market environment, as the price at $1.84 has undergone a strong correction. Over the past three months, the coin has lost significant value, with a 34% decline from the previous peak, and in the last two months alone, it has decreased by 27%.

Warning from the technical indicator suite

Market sentiment is currently leaning bullish, as indicated by signals from technical analysis tools. Analyst Toad pointed out that the technical indicator suite is in a “very weak” state, with particular concern about the formation of a “death cross” on the stochastic indicator — a signal often considered a precursor to further downward volatility.

Additionally, analyst BATMAN warned that after XRP hit resistance levels at two key points, the likelihood of a reversal downward is very high, creating additional downward pressure on the coin.

A glimmer of hope from ETF capital flows

Despite the poor technical outlook, a positive signal has emerged from XRP ETF funds. These investment tools have attracted a net capital inflow of up to $1.25 billion, indicating that institutional investors still have confidence in this project. This capital flow has helped support the demand side of the market, easing bearish pressure.

XRP-1,01%
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