Ripple’s native cryptocurrency, XRP, has seen a price surge of more than 7% within the past 24 hours. However, several market analysts argue that this uptick may simply represent a classic “dead cat bounce,” a phenomenon commonly observed during broader market downturns, as traders set up positions against a temporary rally in XRP. Analyzing on-chain data indicates a steady drop in both the demand for XRP and the tendency of investors to sell for profits.
### Ripple’s Short-Term Rally Offers No Lasting Relief
This recent price movement is commonly described as a dead cat bounce, which refers to a brief recovery in an asset’s price following a substantial decline. On Monday, XRP’s value fell to a 30-day low of $0.43. For the latest updates in finance and business, visit COINTURK FINANCE.
In the aftermath of this decline, the market experienced a rebound, with XRP’s price climbing by 12% over the last day. Many investors, however, view this as merely a dead cat bounce. Furthermore, both on-chain data and daily price charts suggest that the altcoin may be poised to continue its downward trajectory.
The negative divergence between XRP’s price and daily active addresses (DAA) has also drawn significant attention. This metric compares the asset’s price fluctuations with variations in the number of daily active addresses, enabling investors to gauge whether network activity corresponds with the observed price movements.
As of now, the analysis of XRP’s price DAA deviation shows a significant -51.65%. A negative price DAA deviation during a price increase implies that user engagement or network activity is not keeping up with the price rise, signaling a weak and unsustainable rally.
### How Much is XRP Coin?
Should selling pressure escalate, XRP may forfeit today’s gains and persist in its downward trend, potentially plummeting to $0.46.
Conversely, if buying momentum continues and indicators shift positively, XRP’s price could elevate to $0.52. At the time of this report, XRP was valued at $0.5146.
In summary, Ripple’s XRP enjoyed a 7% price increase over the past 24 hours, but many analysts caution that this might merely reflect a typical “dead cat bounce.” Furthermore, on-chain data indicates a decline in demand and a concerning trend of profit-taking among investors.
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**Disclaimer:** The information presented in this article does not constitute investment advice. Investors should recognize that cryptocurrencies are highly volatile and carry inherent risks; therefore, they should conduct their own research.
