XRP Price News: Reversal Odds Rise as XRP Hits Key EMA at $1.39

XRP (XRP) has gone down by nearly 4% in the past 24 hours as the token faced some strong selling upon hitting a key technical resistance at $1.39.

Trading volumes are still relatively low at $2.5 billion, indicating that the rally that pushed it to these levels in the past few days was the result of thin volumes.

As it tends to happen during bear markets, participants tend to rotate toward the top two names in the crypto space – Bitcoin (BTC) and Ethereum (ETH) – and shun all other tokens.

Although XRP’s year-to-date losses are similar compared to ETH, Bitcoin has managed to outperform this token by nearly 10%, with a milder loss of 18% compared to XRP’s 28% retreat.

XRP Exchange Inflows Skyrocketed Since April Started

Net inflows to XRP-linked ETFs have also dried up in the past few weeks. Data from SoSoValue confirms this, as these vehicles have booked $0 in inflows in 5 of the past 9 days.

Wall Street seems to have lost interest in this token as market conditions have deteriorated. Hence, even though the situation in Iran, and oil prices for that matter, have stabilized a bit, XRP might not immediately benefit from this phenomenon.

Meanwhile, on-chain data from Santiment suggests that whales were already preparing to dump XRP once it moved to higher ground.

According to this crypto analytics firm, net inflows to exchanges rose by more than 300% since April started. This metric tracks a moving average of the amount of XRP tokens moved from cold storage to exchanges.

Exchange inflows are especially relevant during bear markets as they track whales’ positioning. When they rise rapidly, it means that deep-pocketed investors are positioning to sell.

XRP Retreats After Hitting Key EMA in the 4H Time Frame

This behavior is consistent with the strong decline we saw in the 4-hour chart right after XRP hit the 200-period exponential moving average (EMA) in this lower time frame.

Whales took advantage of the token’s uptick and started to sell at $1.39. As a result, we are once again retesting a key support at $1.33 that has cushioned previous pullbacks.

XRP needs to stay above this level to prevent a stronger decline to $1.20. This reversion to the mean move has already happened three times in the past two and a half months. Interestingly, the stronger downticks occurred in the middle of February and March.

If this pattern repeats, we might expect a strong decline in the next 6 days or so, following this rejection of a key resistance.

The Relative Strength Index (RSI) just dropped below the 14-period moving average, indicating that bearish momentum is accelerating.

Moving forward, the $1.30 support is the key level to watch. If a break below this mark happens, the odds of a drop to $1.20 would be quite high. This means a 10% downside risk from where XRP is at now.

Heading down to the hourly chart, we can see that a sell signal popped up right after the $1.39 area was rejected. Also, previous candles left big upper wicks, indicating strong selling at that level.

We are seeing some early signs of consolidation at $1.33, but we will have to wait until the American session starts to confirm where the market might be heading.