XRP price has recently recovered its losses along with the crypto market, but the struggle to rebound continues. To make matters worse, investors are now becoming a bit skeptical, which could lead to selling. XRP price is already showing a downward trend, and this process could intensify as negative signals emerge.
What’s Happening on the XRP Front?
XRP’s Chaikin Money Flow (CMF) shows that outflows are at a monthly high. This data indicates that the trend of investors withdrawing their funds continues, and the high outflow level suggests significant selling pressure in the market.
The price daily active address (DAA) divergence also reveals selling signals, which could lead to increased participation in selling activities. This divergence highlights a weakening in buying interest compared to selling pressure. A sell signal is typically observed when both participation and price movement decline. This indicates growing pessimism among investors reacting to changes in market sentiment.
Therefore, current market indicators show a bearish trend for XRP driven by significant investor withdrawals and increased selling pressure. As a result, XRP price action may experience further declines.
XRP Chart Analysis
XRP price failed to hold above the 38.2% Fibonacci Retracement line at $0.58 twice in the last four weeks. This is a sign of weak sentiment among investors and the market, and the situation doesn’t seem similar as the altcoin recovers from the previous decline.
If the aforementioned bearish signals further impact the price, it wouldn’t be surprising to see the token decline further. This could push the XRP price from its current level of $0.57 to test the support at $0.52, which coincides with the 23.5% Fibonacci line. However, if the altcoin manages to reclaim $0.58 as a support base, it might have a chance to break the resistance at $0.63. XRP has failed at this point many times, but a successful breach could invalidate the bearish thesis.
