- XRP’s price struggles below $2.25, with analysts expecting a possible retest of the crucial $2 support level.
- Fibonacci resistance and a potential fourth cycle suggest XRP may face further decline before an upward shift.
- A sharp 68% drop in active token addresses signals possible changes in market sentiment and user engagement.
The price of XRP has not increased this month, despite a growing feeling among traders that XRP is set to improve. Cryptocurrency has moved below the critical $2.25 support level. Therefore, the price is expected to retest $2 ,and that would be a big turning point for investors.
According to analysts, XRP is currently facing resistance from Fibonacci price levels. The current trend suggests that cryptocurrency is on the way to a fourth major cycle. Although there is a risk of further decline, many believe that the major drop for the token has already occurred this past April. If support at $1.79 is sustained, the cryptocurrency may initiate an upward trend.
Source: X
XRP Futures Climb as Blockchain Activity Falls
Market activity in XRP Futures Open Interest has gone down to $4.11 billion, as opposed to the $4.55 million from the previous day. Even though the previous month’s number was higher, the trend this month shows an increase of 10.48% from $3.72 billion. Higher prices show that the market is becoming more active and there is more interest in buying token.
Source: CoinGlass
The number of addresses that have been active recently, on XRP’s blockchain, is important to consider. During the month, active addresses went from about 17,000 to 24,000. The number of active addresses has dropped sharply in the last day, from 21,870 to only 6,900. In a single day, there was a 68.44% decrease so far this year.
Source: The Block
XRP’s Future at a Crossroads
The sharp decline in active addresses raises concerns about the level of engagement among blockchain users. The sudden decline suggests that there may be a change in the market’s sentiment. The falling prices of XRP are happening at the same time as changes in blockchain activity. Analysts are expected to monitor these metrics the next few days for a chance of reversal.
Even with all these difficulties, the future of XRP is still uncertain, but there is still hope. Upper supports should defend the market, and if it stays strong, there is room for prices to climb. Traders and investors will be looking for early indications of an uptrend to determine if the coin is regaining its strength. The upcoming days will decide the path of the token’s price movement.
The market is closely watching the Ripple token as the situation unfolds. People monitoring the markets are paying attention to both prices and on-chain indicators. The performance of these indicators will probably make it clearer where the coin is headed. Cryptocurrencies remain largely unpredictable, yet the trend of more people joining the market is evident.
Read More: Ethereum’s Big Test: Will Support Hold at $2,630 or Trigger a Steeper Decline?
