The price of $XRP is fluctuating

around the $2.00 level, with the altcoin remaining above $2.08 at the time of writing this report. However, the increasing volatility in its price movement raises concerns about the possibility of it falling below the critical $2.00 level.

Investor sentiment may ultimately determine whether XRP will maintain its current levels or experience a decline.

Holders #XRP rescue

XRP has recently seen a significant increase in active addresses, indicating rising volatility. Historically, an increase in active addresses is associated with major price movements. As the number of active addresses increases, XRP's price movement becomes less predictable, increasing the chances of a sharp move in either direction.

This increasing volatility reflects the uncertainty surrounding the future of XRP, especially as the altcoin approaches a key support level. If the trend of active addresses continues to rise, the price of $XRP may witness a significant shift depending on whether it encounters buying or selling pressure.

XRP Active Addresses

The XRP Vitality Index is currently experiencing a continuous decline, indicating that long-term holders (LTHs) are increasingly accumulating their shares instead of selling them. At its lowest level in six months, this indicator reflects the confidence of long-term holders in the long-term potential of $XRP which contributes to price stability. With long-term holders maintaining their positions, this support can help guard against severe volatility.

The accumulation of long-term holders indicates that investors are not easily affected by short-term price fluctuations. This investment behavior is positive towards XRP, reflecting their confidence in the future of the altcoin.

XRP Liveliness

The price of XRP needs to stabilize

At the time of writing this report, XRP's price is $2.09, stabilizing above the local support level of $2.08. Although the altcoin has managed to hold this level, it remains susceptible to ongoing market volatility. If bearish momentum increases, the price of XRP may drop below $2.08, triggering further declines.

If market conditions weaken overall, the price of XRP may drop towards the $2.02 range or even fall to the critical $2.00 level. Falling below $2.00 may lead to panic selling, as this point represents a psychological support level for many investors. This could exacerbate losses and increase pressure on the market.

XRP Price Analysis

However, a rebound of XRP's price from the support level of $2.08 may provide the necessary momentum to rise again towards $2.13. The presence of LTH support may play a crucial role in stabilizing the price and encouraging the rebound. If XRP can turn $2.13 into a support level, it may negate bearish expectations and trend towards $2.23.

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