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XRP has plunged by over 3.90% as the coin extended its death cross, pushing weekly loss to 11.33%. This continued bearish outlook has seen the price drop to a 90-day low as XRP battles volatility concerns in the crypto market.
XRP price and volume declines reflect broader market caution
Notably, a death cross forms when a short-term moving average crosses below a longer-term average. This technical indicator is considered a bearish signal and triggers caution among investors.
As U.Today reported, the death cross first formed on Jan. 19, pushing the price below the $2 support level. This was despite the upsurge in trading volume at the time. The selling pressure that the death cross sparked was not enough to keep the price above the crucial support zone.
CoinMarketCap data shows that XRP, as of this writing, changes hands at $1.69, reflecting a 3.9% decline in the last 24 hours. The coin, which previously surged toward $2 and traded at a daily high of $1.78, dropped sharply as the effect of the death cross held XRP back.
XRP’s trading volume has also suffered a decline of 20.74% to $4.02 billion within the same time frame. This is largely due to rising Bitcoin dominance, which has seen capital rotate to altcoins. Additionally, there is a general market-wide caution that has restrained investors from betting on risk assets.
Despite this development, XRP Ledger has flashed a signal that whales in the ecosystem are taking advantage of the price dip to accumulate the coin. The ledger suggests that there are high transaction counts, which is indicative of capital rotation, not exit.
XRP whales have been known to leverage their positions in times of price drops. These large holders are likely increasing their engagement on-chain as a preparation for a possible upward price reversal.
XRP February outlook stirred mixed sentiment
Interestingly, within the last 48 hours, Barstool Sports founder Dave Portnoy has purchased XRP worth $1,000,000. According to Portnoy, his decision to buy flows from a quote by the famous investor Warren Buffet, who opined that one has to buy when there is "blood in the streets."
As the broader crypto market looks forward to February, the XRP community is going in with mixed feelings. The coin has a very poor monthly average of -5.30% for February, and with prices already in troubled zones, there are concerns of further downside.
However, bulls believe that XRP could reclaim $2 given the quiet activities of large holders in the ecosystem.
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