XRP recently hit an all-time high (ATH) of $3.40 amid a bullish trend lasting two weeks, marking a significant milestone in the cryptocurrency's journey. However, it seems that this upward momentum has hit a temporary ceiling.
Current indicators are pointing towards a potential correction phase before XRP can attempt to reach similar highs again. With the token currently trading at $3.11, it appears to be finding stability but shows signs of fragility.
Potential Drop in XRP's Value
A key signal indicating a possible correction is the Price Daily Active Addresses (DAA) Divergence, which is signaling a sell pattern. Despite the positive price movement, there has been a noticeable decrease in the number of active wallet addresses engaging with XRP. This disconnect between price and user activity often signifies a decrease in investor interest, which could have a negative impact on XRP's value.
The declining user engagement is worrisome as it reflects reduced market involvement at a critical juncture when XRP needs strong backing the most. If this trend persists, it may compromise the token's ability to maintain current price levels, making it susceptible to further declines.
XRP Price Forecast: Seeking Stability
Following the ATH of $3.40, XRP is currently trading at $3.11 without experiencing a significant sell-off. At this level, the price appears to be stabilizing. Nonetheless, prevailing trends suggest that this stability might be short-lived.
Considering the sell signals from DAA Divergence and the bearish MACD crossover, XRP could see a correction soon. The price might drop to $2.73, slipping below the $3.00 threshold before finding support and rebounding. This correction could lay a stronger groundwork for any future upswings.
Alternatively, a shift in broader market conditions could steer towards a more positive direction. Should XRP surpass its ATH of $3.40, it would challenge the bearish scenario and potentially create room for a new ATH. Achieving this would heavily rely on increased market involvement and a boost in investor confidence.