Ripple (XRP) is facing an important support level loss, which could result in considerable losses.
To make this worse, the altcoin is observing no support from its investors or the crypto market.
Ripple Investors Make No Effort
XRP price is facing a bearish outcome, and investors are not supporting cryptocurrency. This is because, in the last couple of days, their participation has gone down considerably, falling to a five-month low.
At the moment, the total number of addresses conducting a transaction on the network has declined to less than 18,000. Such an instance was last seen back in December 2023, right after Ripple native token hit the local bottom after correcting from its November bull run.
Given that the price is declining, and so are the active addresses, the market seems to be flashing a “sell” signal at the moment.
In addition to the investors, the market is not supporting a recovery either, as evident in the Relative Strength Index’s (RSI) drop. The RSI is a momentum oscillator that measures the speed and change of price movements, indicating overbought or oversold conditions in an asset’s price.
Read More: Everything You Need To Know About Ripple vs SEC
Currently, the indicator is in the bearish zone after failing to breach the neutral line of 50.0 twice in the past two weeks. This shows that the XRP price could find difficulty in noting a recovery given the lack of support from the market as well.
XRP Price Prediction: Losing a Crucial Support
XRP price, trading at $0.51 at the time of writing, can be seen falling below the 23.6 Fibonacci Retracement level. Marked at $0.51, and this technical level is also known as the bear market support floor. This is because a breakdown below it is considered as an extension of the ongoing bear run.
Whether the XRP price will bear similar effects is to be seen. However, considering the aforementioned conditions, the altcoin could dip to $0.47. A fall below it would result in the Ripple token falling to $0.42, marking an 18% correction.
Read More: Ripple (XRP) Price Prediction 2024/2025/2030
On the other hand, if the 23.6% Fib level is flipped into support, a recovery could occur. Should the XRP price manage to close above the resistance at $0.57, the bearish thesis could be invalidated.
Disclaimer
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