Watcher.Guru analyzed that Ripple (XRP) could see further declines due to rapidly decreasing liquidity and worsening investor sentiment. The media stated, "XRP has been on a downward trend for nearly nine months after reaching an all-time high of $3.65 in July last year. The market cites overall weak market sentiment due to macroeconomic uncertainties and geopolitical tensions as the main reasons for XRP's underperformance. However, according to on-chain analytics platform Santiment, investor sentiment related to XRP on social network platforms has fallen to 'extreme fear' levels. Furthermore, XRP liquidity on Binance has dropped to its lowest level since 2020. This implies that XRP's volatility could rapidly expand. Although the direction, whether up or down, is still uncertain, analysis suggests that there is a high possibility of further short-term declines, given ongoing global economic slowdown concerns and the cryptocurrency market downturn."
