Ripple’s XRP token is currently trading at a critical juncture, hovering just above a key support level of $0.52. With weakening buying pressure and increasing bearish sentiment, bulls may struggle to maintain this support, potentially leading to a sharp decline of up to 27%.
XRP’s Recent Price Action
On October 2, XRP fell below its 20-day exponential moving average (EMA), signaling a potential bearish trend. Since then, the altcoin has been confined to a trading range, facing resistance at $0.55 and finding support at $0.52. However, the declining demand for XRP suggests a possible breakdown of this support level in the near term.
Negative Technical Indicators
The negative price daily active address (DAA) divergence confirms the bearish outlook for XRP. This metric, which measures the relationship between price movements and the number of daily active addresses, is currently at its lowest level since November 2023. A negative DAA divergence indicates a loss of interest or confidence in the asset.
Moreover, XRP’s weighted sentiment is also negative, reflecting a prevailing bearish market mood. This metric gauges the overall sentiment on social media, and a negative value suggests that discussions are dominated by fear, uncertainty, and doubt.
Price Prediction: A Battle Between Bulls and Bears
Given the growing bearish bias, it may be challenging for bulls to defend the $0.52 support level. If XRP breaks below this critical level, Fibonacci retracement readings suggest that the next target could be $0.45.
However, if the $0.52 support holds and XRP rebounds, it could push past the $0.55 resistance level, potentially driving the price towards $0.60. The outcome will depend on the balance of buying and selling pressure in the coming days.
Ripple’s XRP is currently facing a crucial test. If the bulls fail to defend the $0.52 support level, a significant price decline could ensue. However, a successful defense and subsequent breakout could lead to a more bullish outlook. Investors should closely monitor XRP’s price action and technical indicators to assess the potential risks and rewards.
Also Read: XRP Price Forecast – Could Capturing 5% Of SWIFT’s $1.5 Quadrillion Market Push It To $60?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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