Recent analysis suggests that XRP is positioned for a possible 20% drop to $1.70, primarily driven by a formation of an inverted V-shaped correction pattern on the daily chart. Currently trading approximately 18% below its May peak of $2.65, XRP faces pressure from several declining indicators, including the weekly relative strength index (RSI), which shows increasing bearish momentum.
The rise in XRP's price from a low of $1.61 to a high of $2.65 in early June has turned noticeable as bears took profits, leading to a decline in daily active addresses and new accounts, indicating a waning interest in transactions on the XRP Ledger. Transaction activity has fallen significantly, with daily active addresses dropping from around 608,000 to nearly 31,200.
Analyst MasterAnanda, on TradingView, reflects similar views, pointing out the loss of bullish momentum and significant resistance levels capping any potential recoveries for XRP. The critical support zone at $1.72 could be tested as the price approaches, with expectations that it may decline further due to key bearish divergences and reduced market participation.
"It looks like XRPUSDT can recover any minute now, but the bearish momentum continues to grow," he comments, suggesting traders may experience further price erosion until reaching key support levels.
The rise in XRP's price from a low of $1.61 to a high of $2.65 in early June has turned noticeable as bears took profits, leading to a decline in daily active addresses and new accounts, indicating a waning interest in transactions on the XRP Ledger. Transaction activity has fallen significantly, with daily active addresses dropping from around 608,000 to nearly 31,200.
Analyst MasterAnanda, on TradingView, reflects similar views, pointing out the loss of bullish momentum and significant resistance levels capping any potential recoveries for XRP. The critical support zone at $1.72 could be tested as the price approaches, with expectations that it may decline further due to key bearish divergences and reduced market participation.
"It looks like XRPUSDT can recover any minute now, but the bearish momentum continues to grow," he comments, suggesting traders may experience further price erosion until reaching key support levels.
