XRP’s rally faces a major obstacle: what will the altcoin do now?

• XRP fell as Ripple moved 50 million tokens, causing a stir in the market.
• Overall market sentiment towards XRP is mixed, with neither bulls nor bears in control.

Ripple [XRP] The recent price surge has hit a wall, leaving investors wondering what is holding back its momentum. The cryptocurrency saw a promising 6% rise yesterday, but fell 2% today.

What exactly is bringing down XRP?

Why is XRP down today?

Recent data Blockchain tracker Whale Alert has revealed a massive transfer of 50 million XRP tokens from Ripple Labs Inc. to an unknown wallet worth approximately $25.7 million.

This large-scale move follows another huge transaction last week, in which over 100 million XRP was sent to an external wallet.

Typically, these Ripple dumps tend to negatively shake the price of XRP. In effect, they increase the supply of XRP in the market, which can lead to downward pressure on prices if demand remains constant.

And it is: XRP crossed the $0.55 threshold less than 24 hours ago, but the token is worth $0.53 at press time.

What does the market tell us?

AMBCrypto’s take on Coinglass data revealed that XRP’s trading volume increased slightly by 3.68%, totaling $1.41 billion, indicating a moderate increase in trading activity.

However, open interest decreased by 2.93%. This decline suggests a slight cooling of market enthusiasm or a phase of consolidation.

Source: Coinglass

The Long/Short ratio across all platforms showed a mix of bullish and bearish sentiments. These mixed signals suggest a sense of caution among traders and investors.

The contrast between Long/Short ratios implies that even though some of the top traders are bullish, the market as a whole remains divided. If the bullish bets of top traders prove correct, we could see an upward movement in XRP price.

Meanwhile, AMBCrypto’s look at social sentiment data revealed that the Ripple Fear and Greed Index stood at 54% at press time, indicating neutral market sentiment for XRP.

Source: CFGI

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Investors might consider holding their positions as suggested by the index’s “Hold On” investment suggestion while keeping an eye on volume dynamics, order book conditions and whale activities.

These factors could quickly shift market sentiment in one direction or the other.

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