This Is How #ripple (XRP) Price Is Primed for an 18% Correction
The ongoing lack of recovery appears to be prompting investors to offload their holdings, potentially exacerbating the decline & complicating any efforts to bounce back.
Ripple Investors React to Decline
- With the XRP price dropping to $0.42, a wave of pessimism has swept through many token holders, evident in their actions. The divergence in daily active addresses (DAA) is currently signaling a sell-off.
- This divergence occurs when the price is either rising while participation decreases or when both factors are negative. In XRP's case, it's the latter scenario, indicating that holders are likely looking to offload their assets before incurring further losses.
- This cautious sentiment is also spreading to potential investors, as reflected in the network growth metric, which has plummeted to a four-year low. Network growth measures the rate at which new addresses are being created on the network.
- It serves as a gauge of the project's traction in the market, signaling whether it's gaining or losing momentum. Ripple's declining network growth suggests that potential investors perceive little benefit in engaging with XRP transactions.
XRP Price Forecast: Maintaining Above Critical Level Is Crucial
- At its current trading price of $0.53, XRP is hovering just above the 23.6% Fibonacci Retracement level between $0.73 & $0.42. This level, often referred to as the bear market support floor, is critical because as long as it holds, there remains a chance for the crypto asset to stage a recovery.
- Amid bearish sentiment, XRP might break below the support level, potentially dropping to $0.47, marking an 18% decline from its recent peak to the $0.42 support level.
- Nevertheless, if XRP manages to bounce back from the 23.6% Fib line & reclaim the 38.2% Fib level at $0.57 as support, it could invalidate the bearish outlook. This would potentially propel the #altcoin to rise to $0.60 and recover its recent losses.
Source - beincrypto.com
