[Analysis] "XRP may experience long-term weakness... Could fall to $0.87 if past patterns emerge"

An analysis suggests that XRP could significantly decline considering on-chain indicators.

On the 31st (local time), Cointelegraph stated, "XRP's Net Unrealized Profit/Loss (NUPL) data indicates that XRP could significantly decline in the coming weeks," adding, "It is showing a similar trend to the past when XRP plummeted by 75% to 90%." The NUPL is an indicator that measures the total unrealized profit and loss of XRP holders and is used to gauge trend reversal points.

In the past, XRP showed a significant decline when the NUPL entered the 'negative' phase. The media stated, "Considering past cycles, XRP showed a sharp decline after the NUPL entered the 'negative' phase following the 'euphoria' phase," citing examples from 2018 and 2021. It explained that when the NUPL entered the 'negative' phase in 2018 and 2021, XRP plummeted by 90% and 75% from its peak, respectively.

Additionally, the XRP weekly chart also suggests a sharp decline. The media reported, "In 2021, XRP formed a bearish divergence in the Relative Strength Index (RSI) after forming a peak on the weekly chart. Subsequently, the upward momentum weakened, leading to a strong break below the 50-week and 200-week moving averages, resulting in a decline of about 85%," it continued. "This year, a similar RSI divergence has formed, and it has already fallen more than 40% from its peak," it analyzed, "If the 50-week moving average ($1.58) collapses, it could fall to the 200-week moving average of $0.87."

As of 11:18 PM, XRP is trading at $2.10 on the Binance USDT market, down 1.22% from 24 hours ago.