Ripple (XRP) is experiencing price corrections, showing a downward momentum in both daily and weekly charts. According to recent data, the token’s price could drop to a significant support level before potentially rising again.
Over the past seven days, the price of XRP has fallen by more than 3%. Based on CoinMarketCap data, XRP’s value has decreased by over 2% in the last 24 hours. At the time of writing, it is trading at $0.6066 and has a market value of over $32.67 billion.
Experts are examining XRP’s liquidity levels to determine points where the token encounters selling pressure. Analysts note that XRP’s liquidity increased at the $0.644 level and the price began to fall. However, the token has a significant support level at $0.59.
If XRP successfully tests this support level, it may not drop to $0.55. Negative sentiment about the token increased as the price fell, but its social dominance remained high throughout the week. According to Santiment data, XRP’s Market Value to Realized Value (MVRV) ratio dropped last week.
During the same time frame, XRP’s Binance Funding Rate increased while its price dropped. This could indicate that derivative traders are actively buying the token at lower prices. Daily chart analyses suggest that the Bollinger Bands indicate XRP’s price has entered a less volatile region and the likelihood of a significant price drop is low.