Ripple (XRP) Price Forecast: XRP Sell-Orders Surge 500% as Traders Stack Bitcoin for US Elections

XRP Price Forecast: 

XRP price tumbled below $0.52 on Nov 1, surrendering 8% gains booked when it raced to a weekly timeframe peak of $0.55, 48 hours earlier on Oct 29. On-chain data trends show a negative divergence between XRP coins velocity and the recent downward price action.

Can XRP price hold the $0.50 support as crypto traders lean overwhelmingly towards BTC ahead of the US Elections.

XRP Price Sinks 21% as Investors Shift Focus to Bitcoin

Ripple (XRP) price emerged one of the biggest losers among the top 10 ranked crypto assets in October 2024. XRP price trend quickly fell behind in the first half of the month, plagued by market FUD (fear uncertain and doubt) surrounding the US SEC’s appeals process against Ripple.

The chart below show how price dipped 16.45% in October before declining by another 4.67% during the daily timeframe on November 1. Meanwhile, Bitcoin price, currently trading below $70,000 has recorded 15% gains since the start of October.

This divergent trend between XRP and BTC price in October 2024 further lends credence to the narrative that crypto investors are leaning more towards Bitcoin as the US Elections slated of Nov 5 draws closer.

Sell-Orders Surge 145% Amid BTC Rally

As anxiety looms over Ripple vs. SEC appeal battle, weeks of sideways price action has now sparked increased selling pressure within XRP markets.

Recent trends observed in the XRP derivatives markets this week suggests that current holders are seeking to exit to ape in on profitable opportunities as market activity peaks ahead of the US elections. 

Alluding to this narrative, CryptoQuant’s Taker-Sell volume tracks the total volume of sell orders filled by takers in the perpetual futures markets, identifying real-time swings in market sentiment.

XRP’s Taker-Sell volume stood at $62.9 million at the start of the week on Oct 27. But the latest data shows that figure has climbed $158.5 million at the close of Oct 31, reflecting an increase of 145% within the week.

A rise in taker-sell volume is generally considered a bearish signal, as it indicates a growing dominance of sellers over buyers in the derivatives market.

Taker-sell volume specifically tracks orders executed at the asking price, hence, a surge implies that majority of active  traders are currently accepting prices lower than market price, to exit their XRP positions.

Historical trends also confirms this stance showing that the last time XRP taker sell volume exceeded $259 million mark on Oct 24, XRP price had tumbled to a multi-month low of $0.49. In effect, with sell-side pressure in derivative markets on the rise, the spot price is at risk of further downswings in the days ahead.