XRP Price Drop: Technical Indicators and Network Activity Signal Bearish Trend
XRP Price Slumps Amidst Bearish Signals
XRP experienced significant selling pressure, dropping over 5% in the last 24 hours and more than 12% in the past week. This downturn is accompanied by worsening technical indicators and a sharp decrease in on-chain activity, raising concerns about XRP's ability to maintain key support levels.
Directional Movement Index (DMI) Shows Strong Bearish Momentum
XRP's DMI is flashing strong bearish signals. The Average Directional Index (ADX), a measure of trend strength, surged to 47.14 from 25.43 in just one day. Readings above 40 indicate a very strong trend; in XRP's case, this confirms intensifying bearish momentum.
Further analysis of the DMI components reveals a significant divergence: the +DI (upward price pressure) sharply dropped, while the -DI (downward price pressure) surged. This underscores sellers' dominance and weakening buyer strength.
Source: TradingView
Plummeting Network Activity
XRP's 7-day active addresses have plummeted by over 70% from a recent peak of 1.22 million on March 19th to just 331,000. This significant drop in network activity suggests waning user engagement and potential investor interest.
Source: Santiment
Price Analysis and Potential Future Movement
XRP's Exponential Moving Averages (EMAs) show a strong downtrend, with short-term EMAs below longer-term ones. This bearish alignment suggests that recent price momentum is weaker than the longer-term average. If this trend continues, XRP could retest support at $1.90, potentially dropping further towards $1.77.
Source: TradingView
However, a shift in market sentiment and a break above the resistance level of $2.22 could trigger renewed bullish momentum, potentially pushing the price towards $2.47 and even $2.59.
Disclaimer: This analysis is for informational purposes only and should not be considered financial or investment advice. Market conditions are subject to rapid change. Conduct your own thorough research before making any investment decisions.
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