Ripple price prediction for August: Will XRP continue to decline?
Ripple price has been in a bearish trend throughout August, falling below $0.60 before struggling to rebound. Investor sentiment appears to be reinforcing the overall downward trend in the market, which could lead to further declines in XRP value.
Why Ripple investors are ignoring it
Indicators show that XRP’s price is being affected by changes in investor sentiment, including heightened capital outflows. The Chaikin Fund Flow (CMF) indicator, which tracks deposits and withdrawals from the asset, shows a clear trend of funds being withdrawn, reflecting declining confidence in XRP. These outflows put downward pressure on altcoins, leading to increased sales activity and weaker market performance. XRP faces a growing challenge to reverse its bearish trend as investors flee.
If this trend continues, it could lead to further price declines as the market outlook becomes increasingly uncertain. This decline in confidence is also reflected in the Moving Average Convergence Divergence (MACD) indicator, which shows XRP’s upward momentum is fading. Therefore, as the lines converge, the indicator suggests that continued weakness is likely to persist.
XRP Price Prediction: Sideways Trend
XRP price may not be able to recover and eventually bottom out below the current $0.58. The price coincides with the 38.2% Fibonacci retracement level, which is currently acting as resistance. If the above factors turn negative, Ripple could face another potential decline, pushing the price to $0.52, the 23.6% Fibonacci retracement level, an important support level known as bear market support. On the other hand, if the broader market recovers and XRP price closes above $0.58, a recovery could begin, helping altcoins negate the bearish logic.
The combination of massive outflows and waning bullish momentum suggests that XRP is currently under pressure. Overall, the market sentiment for XRP remains cautious, with the potential for further price declines if the negative trend continues.
