Although there have been a number of positive developments surrounding Ripple, the price of XRP has not seen any meaningful recovery during this time. This is not surprising given the fact that Bitcoin continues to struggle and altcoins are suffering as a result. So far, as the weekend comes to an end, it appears that the XRP price decline is far from over. A key support level has been broken, and the altcoin is now under threat from the recent move.
Why could the price of XRP collapse further?
RLinda cryptoanalyst subscriber An analysis of the XRP price, showing that there is a lot of downward pressure on the cryptocurrency. This comes as uptrend support established last week was broken over the weekend, pushing the bulls back after the recovery.
However, at the moment, the support trend line highlighted by the cryptocurrency analyst shows that the price has already broken its major support above $1,452. What this means is that the downside risk has become greater. As the cryptocurrency came out of the weekend, it broke another support level at $1.4236, marking the start of another decline.
Now, with the price of XRP expected to be in free fall, the next major support level is just above $1.38. But even this stability is temporary at best and bearish sentiment remains rampant. Once we break down, the cryptocurrency analyst points to the $1,387 area as the next area of interest.
Using the network still faces difficulties
Looking at XRP’s on-chain performance, it seems like the price isn’t the only thing suffering. The data suggests that participation in the XRP Ledger has declined significantly, something that typically coincides with investors eventually withdrawing from the asset.
Daily trading volumes of XRP across exchanges are falling, and similarly, transaction volumes on the ledger are also collapsing. Even the unique account numbers seem to have peaked and have now collapsed towards the 12,000 mark.
XRP Ledger also appears to be experiencing difficulties in the Real World Asset (RWA) market, with fewer than 4,000 holders indicated on the network, according to data from RWA.xyz He appears. All of this points to the fact that XRP is still stuck in a downtrend, and this can only be changed if there is a major trend shift in the cryptocurrency market.
Featured image from Dall.E, chart from TradingView.com
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