XRP is showing signs of potential trouble, with its price under threat of a significant drop by up to 45%. This prediction is based on an emerging bearish descending triangle pattern visible on its daily chart. This pattern, commonly understood as a bearish reversal indicator, has been developing since XRP's upward trend late last year. A drop below current support levels could potentially bring XRP's price down to around $1.20.
The declining number of active addresses on the XRP Ledger adds another layer of concern. Onchain data points to a marked decrease in daily active addresses from a peak of 608,000 in March to roughly 30,000 in recent weeks. This decline could suggest waning user engagement and transaction activity, often signaling decreased liquidity and potential price drops.
If XRP manages to break above the resistance line at $2.18, this bearish scenario could be negated, paving the way for a potential rally towards the $3.00 mark. "A large amount of market selling over the last week has been a significant factor in why XRP has failed to sustain upward moves," noted crypto analyst Dom.
For everyday XRP holders, these developments signal the importance of monitoring price movements and considering protective measures. A close eye on market behavior and key support levels will be crucial for making informed decisions.
Moving forward, whether the emerging bearish pattern holds or is disrupted by a breakout, XRP investors should brace for continued volatility.
The declining number of active addresses on the XRP Ledger adds another layer of concern. Onchain data points to a marked decrease in daily active addresses from a peak of 608,000 in March to roughly 30,000 in recent weeks. This decline could suggest waning user engagement and transaction activity, often signaling decreased liquidity and potential price drops.
If XRP manages to break above the resistance line at $2.18, this bearish scenario could be negated, paving the way for a potential rally towards the $3.00 mark. "A large amount of market selling over the last week has been a significant factor in why XRP has failed to sustain upward moves," noted crypto analyst Dom.
For everyday XRP holders, these developments signal the importance of monitoring price movements and considering protective measures. A close eye on market behavior and key support levels will be crucial for making informed decisions.
Moving forward, whether the emerging bearish pattern holds or is disrupted by a breakout, XRP investors should brace for continued volatility.
