XRP is feeling the heat as the recent bearish market conditions have dragged the altcoin to its lowest point in a month. Investors hoping for a quick turnaround might be in for a disappointment, as XRP's vulnerability to further drops remains a cause for concern.
Lackluster market activity coupled with negative momentum are painting a gloomy picture, hinting at possible additional losses in the short term.
XRP enthusiasts are not convinced either. The Price Daily Active Addresses (DAA) Divergence indicator is flashing a warning signal, triggered by a combination of dwindling prices and decreasing investor engagement.
The dwindling number of active addresses using the network is signaling a weakening buying interest, leaving XRP exposed to further downward pressure.
With the ongoing downturn, investors are exercising caution, further diminishing the appetite for buying. Should this trend persist, it could hasten XRP's descent.
XRP's Relative Strength Index (RSI) has hit a three-month low, underscoring the prevailing bearish momentum. The RSI, an indicator of market vigor, is pointing towards escalating selling pressure.
Should this trajectory continue, XRP might soon find itself in oversold territory, limiting the possibility of an immediate bounce-back.
Typically, a dip into the oversold region hints at undervaluation, sometimes prompting a price rebound. Yet, XRP's past performance suggests that a prolonged bearish phase could prolong losses before any substantial turnaround.
Currently priced at $2.37, XRP is managing to hold above the critical support level of $2.33 amidst a downward trend that has persisted since the start of the month.
Despite fleeting moments of stability, bearish signals indicate that XRP's recovery prospects are bleak without a significant shift in market dynamics.
The prevailing downward momentum hints at a probable further descent. Should XRP breach the $2.33 support, the price may plummet to $1.94, exacerbating investor woes. A breach below this threshold would solidify bearish control, complicating any foreseeable recovery in the near term.
Nonetheless, a rebound from $2.33 could propel XRP towards the $2.70 resistance level. Flipping this barrier into a supportive zone could defy the bearish forecast.
Such a scenario might uplift investor sentiment and pave the way for a potential resurgence in the following weeks.