- XRP bucks the bearish trend with a 3% gain.
- Metrics signal positive momentum.
Even as bearish sentiment rules the market, XRP has defied odds and registered a notable 3% increment. A ray of hope for investors in an overall declining market. However, what are the elements behind this unanticipated increase?
Since breaking out of the symmetrical triangle, Ripple’s token has been rallying before the current range.
Source: Tradingview
XRP scarcity drives demand
Another thing that has contributed to the recent success of XRP is the reduction in total supply.
According to Cryptoquant data, the overall supply of XRP has been on a downward trend. This results in scarcity, which stimulates demand for it and leads to an increase in its value.
This development is known to investors; hence, it has a bearing on how the price behaves. When there is a shortage of XRP and its demand remain static or even escalate, then its prices are more likely to move upward than downward.
This elementary economic concept accounts for most of its latest profits.
Source: Cryptoquant
AMBCrypto further analyzed the taker buyer seller ratio data. The ratio currently stands at 0.908 .This suggests a slightly higher number of XRP sellers than buyers in the market.
In fact, it is almost equal, meaning that some change may occur. With this increase in the number of buyer and the aforementioned decrease in supply, prices are expected to rally and target the next resistance zones
Source: CryptoQuant
What’s ahead?
XRP’s market is currently characterized by a decreasing total supply and a buy-sell ratio close to equilibrium.
Read Ripple’s [XRP] Price Prediction 2024-25
Amidst the general bearish market trends, this explains why it still went up by 3%.
The recent rise in its price by 3% indicates that investors are now gaining trust in it. If this trend remains and the ratio favors more buyers, then there will be a continuous force pushing XRP upwards.
Powered by WPeMatico
