Recent data reveals a concerning trend for XRP, as the number of new addresses has fallen to its lowest point in two months. This decline, down by over 40% from its July peak, suggests reduced participation from potential investors. Notably, while XRP’s price currently remains within an established downward channel, with support near $2.80 and resistance at $5.42, recent trends offer a glimmer of hope for possible upside. 📈
The current bearish momentum is mirrored in the asset’s price action, which has shown a steady decline since reaching $3.80. Technical indicators point to potential gains if the momentum shifts.
Analysts highlight strategic long-term targets at $7, $11, $20, and $27, yet caution that short-term forecasts shouldn’t be relied upon. 📊
Despite the current weakness in price, XRP is consolidating near significant liquidity clusters between $4 and $5.42. These clusters have historically attracted market movement when momentum shifts, as they can facilitate rallies from short liquidations. 👀
The ongoing surge of interest in XRP ETFs adds another layer to this story. 15 such applications are awaiting SEC approval from key players like Grayscale, Bitwise and CoinShares. This potential influx of institutional capital could boost XRP’s adoption and lead to a surge in trading volume.
While short-term sentiment remains subdued with an overall decline of -1.59% daily, derivatives data reveals rising interest. Trading volumes have increased by 26.05%, and open interest has seen a rise of 20.56%. 🤔
Ultimately, XRP currently stands at a crucial crossroads between technical and sentiment analysis. It remains to be seen if the market will follow through with potential upside or continue on its current path of decline.