Ripple has worked with several banks and financial organizations throughout the world over the last few years in order to deliver its crypto-powered financial services.
This is so as to facilitate improved payment mechanisms. The most recent instance is the introduction of XRP-powered payments in Brazil. Despite Ripple’s efforts to enhance its worldwide popularity, the price movement of XRP does not reflect the advancements.
Ripple said that Travelex is the first bank in Latin America to implement the On-Demand Liquidity (ODL) protocol of RippleNet.
In addition, the CEO of Ripple has said that the company is concentrating on CBDCs as the future of fiat currencies. In a few of days, the price of XRP fell from $0.3683 to as low as $0.3196 when these events transpired.
On the 29th of August, XRP was trading at $0.3225 with market size of $15,975,396,540. Messari’s research revealed that XRP’s 3-month and 1-year returns were -24% and -72%, respectively. Certainly, the outlook is not bright.
Ripple’s ongoing legal battle may be one of the causes for this price fluctuation, but on-chain measurements suggest numerous others.
What metrics indicate
The price reduction was followed by a decline in the number of active XRP addresses and trading volumes. Indicating a consequent exodus of investors from the blockchain.
In addition to the aforementioned indicators, XRP’s development followed a similar path. Keep in mind that an increase in development activity is a favourable sign for a blockchain.
The situation for XRP signals that the future months will be difficult. As the volume and active addresses decreased, so did the community’s enthusiasm for cryptocurrency. Since the price decline, XRP’s social dominance has gathered pace in a downward direction.
The majority of the lengthier candlesticks on XRP’s 4-hour chart were red, painting a negative image of the market.
According to the Exponential Moving Average (EMA) ribbon, the 20-day EMA was far below the 55-day EMA, indicating a significant advantage for the bears, which might send the price of XRP down in the next few days.
The MACD and CMF readings supplemented these conclusions. Both signs indicated that investors should anticipate a likely price decrease.
Well, the measurements and market indicators show that investors should have a long-term outlook for XRP.