XRP PRICE DROPS BELOW $2.20: WHAT'S HOLDING BACK THE BULL TODAY?
The current XRP price is $2.17, hovering below the $2.20 mark due to several factors. Here's what's holding back the bulls today:
Declining Network Activity: The XRP Ledger is experiencing a significant slowdown in network activity, with daily active addresses plummeting from 612,000 in the first quarter to around 40,000 currently. This decline in user engagement and transaction activity could be eroding liquidity and buying pressure.
Bearish Momentum: The Relative Strength Index (RSI) is near oversold in the 4-hour chart, signaling strong bearish momentum. Additionally, the MACD momentum is weakening further below the zero line, confirming the ongoing bearish trend.
Resistance Levels: XRP is facing resistance at $2.26, a multi-month descending trendline that has capped upside moves. The price is also below key Exponential Moving Averages (EMAs), with the 200 EMA acting as a ceiling.
Whale Activity: Despite the price struggle, whale cohorts are increasing their holdings, hinting at an improving sentiment and potential breakout. Addresses with 10 million to 100 million coins now hold 12.32% of XRP's total supply, up from 10.91% on April 1.
Market Sentiment: Growing short interest threatens a dip below $2, with traders remaining cautious and eyeing potential downside unless new demand shifts the momentum.
Key levels to watch include :
Support: $2.05-$2.10, a crucial zone that has held firm in previous pullbacks.
Resistance: $2.26-$2.30, a breakout above which could open a move to $2.45-$2.60.
Potential Downside: $1.88-$2.00, a breakdown below $2.05 support could send XRP retesting April lows
