The price of XRP recently saw a huge surge, rising by 40% and reaching an 8-month high. However, the rally seems to be losing momentum, and is now facing a potential pullback.
This decline is due to the emergence of sell signals among investors, indicating a possible shift in sentiment.
high selling pressure
Currently, the Daily Active Addresses (DAA) price indicator is showing a sell signal for XRP. This signal stems from declining investor participation despite the recent price surge, which triggered an immediate market reaction. The resulting selling pressure has led to a 6% price drop today, highlighting the impact of this sell signal.
With the DAA Divergence Indicator continuing to warn of potential weakness, XRP is facing challenges in sustaining recent gains. The decline in active participation after such a strong rally suggests that short-term investor enthusiasm may be fading. These trends suggest that XRP could face additional selling pressure if participation remains low.
DAA XRP price variation.
The overall momentum of XRP price is in line with bearish signals, as the Relative Strength Index (RSI) is in the overbought zone. Historically, when XRP’s RSI enters this zone, it often leads to a reversal as bullish sentiment reaches oversupply. The presence of the RSI in this zone confirms the recent sell signal, supporting the possibility of a price decline soon.
An overbought RSI suggests that XRP’s bullish momentum may be losing steam, and a price correction may follow. With the current overbought conditions, XRP price may find it difficult to maintain its recent highs. This technical indicator also confirms that XRP may be vulnerable to a pullback on the daily chart, which could impact short-term investor sentiment.
SI the XRP.
Ripple XRP Price Prediction: Upward Trend Coming Over Several Months
Despite its recent 40% surge, the price of Ripple XRP has failed to close above the 8-month resistance level at $0.73. As a result, the altcoin has already experienced a 6% decline, indicating a possible correction phase in the near term.
The next potential support for Ripple is at $0.61, a level that had previously held support. If selling pressure increases, Ripple could drop further to $0.56, indicating a deeper correction as investors lock in profits.
The only way to invalidate the bearish outlook is if Ripple price reclaims $0.66 as a solid support level. Achieving this will pave the way for another attempt to break $0.73, which could renew the altcoin’s bullish momentum.
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