To make matters worse, altcoin Ripple is not seeing any support from its investors or the crypto market.
Ripple investors are shedding
The price of XRP is facing a bearish outlook and it seems that investors are not really supporting this cryptocurrency. In fact, over the past two days, their participation has dropped significantly, falling to the lowest level in five months.
Currently, the total number of addresses transacting on the network has dropped to less than 18,000. A similar situation was last seen in December 2023, just after the native token Ripple hit its local low after seeing a correction of its bull run in November. .
As the price of the asset is falling, as are the active addresses, the market seems to be giving a sell signal at the moment.
Apart from investors, the market is also not supporting the price recovery, as shown by the decline in the Relative Strength Index (RSI). RSI is actually a momentum oscillator that measures the speed and variation of price movements and shows overbought or oversold conditions in an asset’s price.
More information: How to buy Ripple? Everything you need to know about XRP
The indicator is currently in bearish territory after failing to break above the 50.0 neutral line twice in the past two weeks. This shows that XRP price may struggle to recover due to lack of market support.
XRP Prediction: Loss of Major Price Support
The XRP price, which is at $0.51 at the time of writing, is seen falling below the 23.6 Fibonacci retracement level. Marked at $0.51, this technical level is also known as the bottom of the asset’s bear market support. This is because a drop below this level is considered an extension of Ripple’s bearish direction.
Whether the XRP price will bear similar impacts remains to be seen. However, given the above conditions, the altcoin could drop as low as $0.47. A drop lower would see the Ripple token fall to $0.42, representing an 18% correction.
More information: XRP Prediction 2024/2025/2030
Conversely, if the 23.6% Fibonacci level turns into support, then the altcoin could start a rally. So, if the XRP price manages to close above the $0.57 resistance, then the bearish thesis could be invalidated.
Moral of the story: We are no longer close to going down with XRP.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with an expert before making any financial decision.