XRP has recently experienced a slowdown in its upward momentum after a period of consistent price growth. Despite a decline in price, some experts believe that strong investor support may prevent XRP from facing significant losses in the near future.

The correlation between XRP and Bitcoin has dropped to 0.4, the lowest level observed since February. Historically, a weak correlation has led to a notable price decline for XRP. However, following such drops, the asset has shown signs of recovery.

While Bitcoin has reached new all-time highs, the diminishing correlation between Bitcoin and XRP indicates weakening support for XRP. Normally, Bitcoin's success could boost altcoins like XRP, yet the current disconnect raises concerns about XRP's ability to capitalize on this. As the correlation weakens further, XRP could encounter additional challenges ahead.

Despite the decreasing correlation with Bitcoin, XRP's investor behavior displays a more stable pattern. The amount of dormant XRP untouched for 3-6 months has been steadily rising recently. This suggests that short-term holders are transitioning into mid-term holders, signaling increased stability and confidence among XRP investors.

The rising supply of dormant XRP implies that more investors are holding onto their tokens rather than selling them. This long-term holding trend could mitigate short-term price fluctuations and help uphold the asset's value during uncertain times.

Currently trading at $2.26, XRP has fallen below the $2.27 support level in the past 24 hours, continuing a downward trend over the last two weeks primarily due to resistance at $2.58. This resistance highlights a slowdown in upward momentum, potentially leading to further downward pressure on the price.

If the decline persists, XRP may test the support level at $2.12, representing a significant loss for investors and potentially intensifying bearish sentiment. However, strengthened investor support could stabilize the price, enabling XRP to hold the $2.27 support and potentially rebound to $2.38 or higher, altering the current bearish outlook.

In such a scenario, a renewed attempt to surpass the $2.58 resistance and drive the price upwards could be feasible.