XRP recently unsuccessfully attempted to set a new all-time high (ATH) of $3.40, and is falling to its current price of $3.15. This decline comes amid increased downward pressure on the chart.
Investors have made the situation worse with decreasing participation, putting further pressure on the altcoin’s performance.
Is XRP Under Pressure?
The daily active address (DAA) divergence is sending a clear sell signal, reflecting a decline in investor activity on the XRP network. The decrease in trading volume is a concern, as this indicates reduced confidence in this altcoin. The appearance of red bars on DAA Divergence indicates a strong sell signal, warning investors of a possible price drop.
If investors continue to withdraw from network activity, XRP’s price could come under increased selling pressure. Lack of strong trading participation weakens support levels, leaving this altcoin vulnerable to a sharper correction. Without renewed interest from participants, XRP’s recovery may be limited in the short term.
XRP’s macro momentum is signaling further downside risks. The moving average convergence divergence (MACD) index is on the verge of a bearish crossover. This technical indicator shows that selling momentum is overcoming buying pressure, causing concern among traders.
Additionally, the histogram bars on MACD are decreasing. A drop below the zero line would confirm that bearish momentum has taken hold. This is consistent with broader market trends, which remain uncertain, complicating XRP price challenges.
XRP Price Prediction: Crossing the Peak
XRP is trading at $3.15 after hitting an ATH of $3.40 earlier this month. Despite many efforts to maintain the upward momentum, this altcoin is still struggling to maintain upward momentum. Bearish sentiment and reduced investor activity continue to weigh on its price trajectory.
If the bearish factors continue, XRP could drop to the critical support level at $2.73, marking a 13% correction. If this support level fails to hold, the price could continue to fall further, possibly even down to $2.18. Such a price drop would erase recent gains, reinforcing the bearish outlook.
Conversely, if XRP establishes $2.73 as strong support, it could regain its footing. A bounce from this level could help the altcoin surpass the $3.40 ATH barrier. If successful, XRP could set a new peak, invalidating the bearish scenario and rekindling investor confidence.