XRP is slowly falling into a hazardous area. The situation in the market is very delicate. At the moment, the sellers have the upper hand, and the buyers find it hard to counter their actions. Meanwhile, while the entire crypto market is uncertain, Ripple is already indicating clear exhaustion. The coin is now approaching a major downturn that could dramatically alter its future outlook in a very painful way.
XRP has consistently suffered through the selling of small and big investors during the past few weeks. The pressure has not been relieved at all. Every time the price tries to recover, it fails eventually. This has made the price weak and also caused disbelief among the investors. If this scenario persists, one of the most crucial support zones of Ripple may soon be lost.
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XRP Price Outlook Turns Fragile Below $1.77
At the moment, XRP is trading around $1.88, so for the time being, it is above water. However, this kind of stability seems weak. The crypto has. over and over, been rejected at the $2 level which is a psychological barrier that once provided support. With each rejection, the bearish sentiment has been reinforced.
Crypto analyst Ali Martinez gives the warning that XRP is at a critical support of $1.77 and may break it soon. This particular level has been serving as a short-term support for the token. If the support is breached, the price may drop rapidly. Martinez further cautions that if there is no new momentum and, even worse, decline in the network, Ripple may get down to the $0.50 level in the short term.
The danger is not merely hypothetical. The pressure from selling keeps increasing. The market has become less stable. Price that cannot come back up after several tries is usually seen as a sign of exhaustion. This exhaustion in the case of XRP might lead to the acceptance of bigger losses.
XRP On-Chain Activity Signals Deeper Trouble Ahead
The warning signs are not restricted to price movement only. The on-chain data for XRP shows the same bearish vibes. The number of daily active addresses has experienced a steep decline going from about 46,000 to close to 38,500 within one week. This drop signifies a decline in user engagement and a drop in demand for transactions.
The decrease in active users signifies a reduction in organic price support. It also indicates the dwindling of speculation interest. In cryptocurrency trading, the trend of decreasing activity usually comes before a stronger downward movement.
Whales are doing the same thing simultaneously. More than 40 million tokens has been delivered to exchanges such as Coinbase in just one week. Often huge transfers are a sign of an intention to sell. Unloading by whales in times of lower network activity makes recovery harder.
In case these trends do not change, the price of the token may fall below the support level of $1.77 and continue to go down until it reaches the next crucial area for buyers at about between $0.79 and $0.80. This situation would consequently put the $1 mark in jeopardy and would be the first step toward a big change in the market structure.
XRP is still able to hold its ground at the moment. However, the situation is already getting worse. If there is no evident change in the activity, sentiment, and demand in the positive direction, the downside risk will continue to be a scenario.
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