XRP has experienced significant selling pressure, declining over 5% in the last 24 hours and more than 12% over the past week. This downturn is accompanied by increasingly bearish technical indicators and a notable drop in on-chain engagement, raising concerns about its ability to maintain key support levels.
With weakening price momentum and reduced user activity, the current trend suggests further potential declines unless market sentiment shifts soon.
Technical Indicators Signal Strong Downtrend
The Directional Movement Index (DMI) for XRP is showing strong bearish signals. The Average Directional Index (ADX), which measures trend strength, surged to 47.14 from 25.43 within a day. Readings above 25 generally indicate a strengthening trend, while values exceeding 40 suggest a very powerful momentum—currently pointing downward for XRP.
The positive directional indicator (+DI), reflecting upward price pressure, dropped sharply from 20.13 to 5.76. Conversely, the negative directional indicator (-DI), which tracks downward pressure, surged from 8.97 to 33.77. This divergence confirms that sellers are dominating the market while buyer interest fades.
Unless there is a significant shift in sentiment, these technical patterns indicate that XRP may remain under short-term pressure.
Sharp Decline in Network Activity
XRP's network engagement has decreased substantially. The 7-day active addresses metric peaked at 1.22 million on March 19 but has since plummeted to approximately 331,000—a decline of over 70% in just a few days.
Active addresses are a crucial indicator of on-chain activity and network health. A rising count typically reflects growing user participation and potential price support, while a sharp drop often signals fading interest and weakening momentum.
This reduction in network engagement could continue to influence XRP’s price negatively in the near term unless activity begins to recover.
Price Outlook and Key Levels
XRP’s Exponential Moving Average (EMA) lines are currently aligned in a bearish pattern, with short-term averages below long-term ones. This structure often appears during sustained downward corrections and suggests that recent momentum is weaker than historical trends.
If the downtrend continues, XRP may retest the support level at $1.90. A break below this could lead to a further decline toward $1.77 in the coming weeks.
On the upside, if market sentiment improves and buying pressure returns, the first major resistance to watch is $2.22. A breakout above this level could renew bullish momentum, potentially pushing the price toward $2.47 or even $2.59.
For those monitoring these developments, staying informed with real-time analysis tools is essential for making timely decisions.
Frequently Asked Questions
What is causing the current decline in XRP’s price?
The drop is driven by a combination of factors, including bearish technical indicators, a significant decrease in network activity, and overall selling pressure in the market.
How important are active addresses in assessing XRP’s health?
Active addresses are a key metric for gauging user engagement and network vitality. A decline often correlates with reduced investor interest and potential price weakness.
What are the major support levels for XRP in the short term?
Key support levels include $1.90 and, if broken, $1.77. These levels are critical for preventing further declines.
Could XRP experience a recovery soon?
A recovery would require a shift in market sentiment, increased buying activity, and a resurgence in network engagement. Resistance near $2.22 must be breached for a bullish reversal.
What tools can traders use to monitor XRP’s trends?
Traders often use technical analysis tools such as moving averages, the Directional Movement Index, and on-chain metrics like active addresses to assess momentum.
Is now a good time to invest in XRP?
Market conditions are highly volatile, and investors should conduct their own research and consider professional advice before making financial decisions. Exploring additional strategic resources can provide deeper insights.
Disclaimer: This content is for informational purposes only and is not intended as financial or investment advice. Always perform your own research and consult with a qualified professional before making any financial decisions.