Ripple’s (XRP) price, which recently surged by 350% over 30 days, has now fallen from its peak of $2.80. This downturn may be tied to a decrease in XRP exchange outflows, as recent data indicates.

If this trend persists, XRP could lose more of its recent gains.

Ripple Investors No Longer HODLing in Numbers

On December 4, XRP exchange outflow was 980.65 million. As of this writing, it has decreased to 44.17 million, indicating a difference of 936.48 million. This metric tracks the number of tokens taken out of exchanges.

When it increases, it means that most holders are not willing to sell. Hence, the cryptocurrency’s price can increase. On the other hand, a decrease indicates that the bullish conviction is no longer as high as it was and could lead to a price decrease.

Considering XRP’s current price is around $2.33, the exchange outflow between yesterday and the time of writing is worth $2 billion. Given the stated conditions, if the outflow continues to fall, XRP’s price might do the same.

Furthermore, according to Santiment, XRP’s Weighted Sentiment has seen a significant decline, dropping from 6.75 to 0.035. Weighted Sentiment gauges market perception, reflecting whether participants are optimistic (bullish) or pessimistic (bearish) about a cryptocurrency.

A rising sentiment indicates growing bullishness and enthusiasm around the token, while a decline points to bearish sentiment, signaling reduced confidence or negativity in the market. If this trend persists, it could dampen demand for XRP, potentially leading to a price decline as market interest wanes.

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Author: Victor Olanrewaju