- Bearish MACD Crossover: Signals weakening market momentum after XRP’s $3.40 ATH surge.
- Declining Wallet Activity: Fewer active addresses hint at waning investor interest and engagement.
- Key Support Threatened: XRP could drop to $2.73 if $3.00 threshold fails to hold.
XRP, one of the top three largest cryptocurrencies globally, has taken a sharp tumble. The token’s price fell by 11%recently as the broader crypto market faced a sell-off. Following a two-week rally that pushed XRP to an all-time high (ATH) of $3.40, bullish momentum seems to have fizzled out. At the time of writing, XRP is trading at $2.78.
What’s Behind the Decline?
The recent price dip comes alongside clear signs of investor hesitation. A price divergence, often seen as a sell signal, is one major indicator of this downside potential. Even though XRP experienced some bullish action recently, the number of active wallet addresses interacting with the token has dropped significantly. This reduction in participation hints that investor interest—crucial for sustaining upward momentum—may be waning.
Adding to the bearish sentiment is a crossover in the MACD (Moving Average Convergence Divergence) indicator. This technical signal suggests that market momentum has weakened shortly after XRP’s surge to its ATH. Without strong buying pressure or renewed investor activity, the token could face further corrections.
Price Outlook: Stabilization or Deeper Losses?
Currently trading around $3.11, XRP appears to be stabilizing, at least for now. But analysts aren’t convinced the support will hold. Bearish signals from the DAA (Daily Active Addresses) Divergence and the MACD suggest the token could fall further, potentially testing a critical support level at $2.73. If it dips below the psychological $3.00 threshold, this drop could create a firmer base for XRP to stage a future recovery.
Despite the gloomy short-term outlook, there’s still a chance for a turnaround. If XRP manages to break above its ATH of $3.40, it could invalidate the current bearish trends. For that to happen, though, the market needs a revival of investor confidence and an influx of new participants.
A Shaky Bullish Scenario
Right now, XRP finds itself in a precarious position. The drop in active wallet participation and bearish technical indicators are warning signs of a potential near-term sell-off. While a resurgence in the token’s price is still possible, it hinges on broader market dynamics and renewed interest from investors.
The crypto world will be watching closely. Can XRP recover and hit new highs, or is the current downturn a sign of deeper trouble ahead? Only time—and the market—will tell.
