XRP recently attempted to form a new all-time high (ATH) at $3.40, but failed, falling to its current price of $3.15. This decline comes amid increasing bearish momentum on the charts.
The decline in participation has made the situation worse for investors, as the decline in participation has put increased pressure on the altcoin’s performance.
XRP is facing pressure
The daily active address (DAA) price divergence is emitting a clear sell signal, reflecting the decline in investor activity on the XRP network. The decline in transaction volume is a cause for concern, as it highlights waning confidence in altcoins. The presence of red bars on DAA Divergence indicates a strong sell signal, warning investors of a potential price decline.
If investors continue to pull back from network activity, the price of XRP could face increased selling pressure. The lack of strong transaction participation weakens support levels, making the altcoin vulnerable to sharp corrections. Without renewed interest from participants, XRP’s recovery may remain limited in the short term.
XRP’s overall momentum indicates further downside risks. The Moving Average Convergence Divergence (MACD) is about to cross bearish. This technical indicator indicates that selling momentum is outpacing buying pressure, raising concerns among traders.
In addition, the histogram bars on the MACD are receding. A drop below the zero line would confirm that downward momentum has taken hold strongly. This is in line with the broader market trend, which remains uncertain, compounding the challenges facing XRP price movement.
XRP Price Forecast: Breaking the Highs
XRP is trading at $3.15 after hitting $3.40 earlier this month. Despite numerous attempts to maintain the rally, the altcoin is struggling to maintain upward momentum. Bearish sentiment and declining investor activity continue to influence its price trajectory.
If bearish factors persist, XRP could fall to the critical support level of $2.73, marking a 13% correction. Failure to hold this support could result in further losses, which could push the price down to $2.18. Such a decline would erase recent gains, reinforcing bearish expectations.
On the other hand, if XRP can secure $2.73 as a strong support, it may regain its position. A bounce from this level could enable the altcoin to break through the $3.40 ATH barrier. If successful, XRP could form new highs, effectively nullifying the bearish scenario and reigniting investor confidence.
Disclaimer
In line with Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy and Disclaimer have been updated.
