Ripple (XRP) Price Gain May Mislead Investors
Date: 2025-07-09 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Over the past week, the Ripple (XRP) price has increased by about 4%, which coincided with an improvement in sentiment in the altcoin market. However, on-chain analytics data warns of a possible decrease in buyer activity and the beginning of profit-taking. According to statistics from Glassnode, since the beginning of July, there has been a significant increase in the net movement of XRP to centralized exchanges, which reached an eight-month high of about 283 million tokens. This means that many token holders are transferring them to exchanges to sell, putting pressure on the price.
Additionally, the Chaikin Money Flow (CMF) indicator, which reflects the inflow and outflow of capital, shows negative dynamics. Its value is approaching zero, which signals a decrease in buying interest and the possible beginning of a bearish trend. Although CMF has not yet fallen into the negative zone, the downward trend may indicate weakening demand and a possible market reversal if a new wave of buyers does not emerge.
On the daily chart, XRP is trading inside an ascending channel that has been forming for a week. The price is currently testing the lower line of this channel - the support level. If XRP breaks this boundary downwards, this will be a signal for further decline, potentially to around $2.14. On the other hand, if demand from buyers increases, the price may rebound and reach around $2.35.
Thus, despite the positive growth of the Ripple price, there is a high risk that this rise will be temporary. Investors should closely monitor the dynamics of on-chain metrics and key indicators in order not to fall into the trap of a sudden market reversal.
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