Ripple’s (XRP) weak market outlook is a result of Bitcoin’s crash from its $108K ATH. This drop has caused XRP price to be primed for another crash that could send it to $1. Here are five signs that support this bleak out for Ripple.
5 Sell Signals That Suggest XRP Price Could Crash to $1
Let’s explore five sell signals hinting at a drop in XRP price to $1.
General Crypto Market Weakness Affects XRP Price
Bitcoin’s 15% drop from ATH of $108,421 caused crypto markets to crumble. Top altcoins, including XRP, that were up massively have retraced most of their gains. Due to altcoins’ high correlation with Bitcoin, they tend to follow the path set by the leader. With BTC showing signs of a further decline, XRP price will also follow suit, potentially tagging the $1 level.
Decline in Daily Active Addresses & Network Growth
When the network’s growth and daily active addresses drop, it indicates that investors, both new and existing, are not interested in the token at the current price level. This often happens after an uptrend, where both the metrics tank, suggesting an exodus of investors and hints at a potential reversal of Ripple price to $1.
Ripple Long-Term Holders’ Massive Unrealized Gains
The 365-day MVRV for Ripple stands at 77%, showing that investors who purchased XRP in the past year at an average profit of 77%. During the yearly high, this number stood at 200%. High unrealized gains often become a source of selling pressure if investors decide to book profits. This is the third sign that hints XRP price could crash to $1 again.
XRP Price Analysis: A Crash to $1 Likely
XRP price has formed a descending triangle setup, which contains lower highs and equal lows, connected by trend lines. This setup often leads to bearish breakouts and forecasts a 31% crash to $1.34, obtained by measuring the triangle’s height and adding it to the base at $1.95.
For this setup to be successful, XRP price needs to break below the $1.95 support level, which is the triangle’s base. If bulls fail to stabilize Ripple at $1.34, it could trigger a further drop to $1.
On the other hand, if Bitcoin reverses the bearish outlook, then XRP price could. In such a case, a recovery from $1.34 leading to a breakout above the triangle’s declining trend line will signal a bullish outlook. Such a development could lead to a revisit of $2.90 followed by $3.