Ripple’s XRP is at a crucial juncture, trading at $0.53, just above a key support level at $0.52. If the price falls below this threshold, it could result in a sharp decline of up to 27%.
With buying pressure weakening and bearish sentiment increasing, bulls may struggle to maintain this support.
Ripple Holders Sidestep the Token
On October 2, XRP dropped below its 20-day exponential moving average (EMA), which reflects its average closing price over the last 20 days. Since then, the altcoin’s price has trended within a range, facing resistance at $0.55 and finding support at $0.52. However, the falling demand for XRP hints at a possible dip below this support line in the near term.
Read more: XRP ETF Explained: What It Is and How It Works
The token’s negative price daily active address (DAA) divergence confirms this bearish outlook. As of this writing, this metric stands at -68.92, its lowest level since November 2023.
The DAA divergence metric measures an asset’s price movements with the changes in its number of daily active addresses. When it is negative, as in XRP’s case, it suggests that there is a loss of interest or confidence in the asset.
Moreover, XRP’s weighted sentiment reflects the negative market bias toward the altcoin. This metric, which gauges the overall market mood, currently stands at -0.07.
When the value of an asset’s weighted sentiment is below zero, most social media discussions are fueled by negative emotions like fear, uncertainty, and doubt. This is a known precursor to a sustained price decline, putting XRP at risk of falling below support.
XRP Price Prediction: All Lies With the Bulls
XRP’s growing bearish bias may make it challenging for the bulls to defend the support at $0.52. If XRP’s price falls below this critical level, Fibonacci retracement readings suggest the next target could be $0.45.
Should strong selling pressure persist, the price might drop further to the July 5 low of $0.38.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
On the other hand, if the $0.52 support holds and XRP rebounds, it could push past the $0.55 resistance level, potentially driving the price toward $0.60.
Disclaimer
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