Indicators Suggest XRP Price Decline May Be Over

XRP Price Decline Slows as Key Indicators Point to Recovery

The XRP token has experienced a significant decline, dropping nearly 23% over the past month. However, recent data indicates potential signs of a recovery, with XRP gaining 6% in the last 24 hours. Key technical and on-chain metrics suggest that selling pressure is waning.

Investor Losses Indicate Market Bottom

On-chain data reveals that investor losses are mounting, a common indicator of a market nearing its bottom. The Net Unrealized Profit/Loss (NUPL) metric, which reflects whether investors are in profit or loss, has turned deeply negative for short-term holders, reaching a one-year low of -0.20 on October 17 with XRP trading near $2.30. Historically, similar lows have preceded significant price rebounds.

Long-term holders also reflect diminishing profits, with NUPL dropping to a six-month low of 0.53. Previous lows have led to short-term price bounces, supporting the notion of a potential recovery.

Momentum Indicators Align with Recovery Prospects

Momentum indicators further support the possibility of a recovery. The Relative Strength Index (RSI) shows a hidden bullish divergence, where XRP's price forms a higher low while RSI forms a lower low, suggesting underlying market strength despite recent weakness.

Key Levels for Confirming XRP Recovery

Technical analysis of XRP's price structure indicates potential recovery signals. Death crossovers, where short-term moving averages fall below longer ones, suggest the bearish phase may be ending. XRP currently trades near $2.35, with a daily close above $2.44 indicating strength. A move past $2.59 could open the path to $2.82 and $3.10. Conversely, a drop below $2.28 could weaken the recovery outlook, with potential support at $2.08 or $1.77.