In recent weeks, the XRP coin has failed to surpass the $3.10 resistance level, which has led to a weakening of its bullish formation. Despite data within the blockchain indicating a potential price movement towards $4.30, user activity on the network remains low. Consequently, experts caution that without robust network support, a sustainable price increase seems unlikely.
Formation Signals Rise Yet Price Remains Weak
At the end of July, XRP’s price chart highlighted an inverted head and shoulders formation, typically indicative of a change in trend. This formation sparked expectations of a strong upward movement in price. However, the anticipated rise did not materialize. As analyst BitGuru observed, “Despite the inverted head and shoulders formation, XRP’s price could not maintain its momentum.” This reflects the current market scenario.
Following an unsuccessful breakout, the market succumbed again to selling pressure, maintaining the ongoing overall downtrend since late July. Throughout August, the price approached the $3.10 level multiple times but was met with selling on every attempt. No rally managed to persist above this resistance level.
Currently, indecisiveness persists around the same resistance. Without strong closes above $3.10 and increased trading volume, the market remains open to downward movements. XRP’s recent sideways trading near $3.00 indicates limited gains beyond these levels.
Glassnode data reveals that as of August 27, the number of active addresses on the XRP network had dropped to 38,303. This decline in active addresses indicates that the network doesn’t support current price movements. Contrastingly, in June, active addresses saw a significant surge, exceeding 500,000. However, since the end of July, numbers have trended downward, remaining largely flat.
Analysts Envision Diverse Scenarios
Even at the beginning of August, when the price tested $3.40, the lack of increase in address numbers demonstrated weak foundations for the rise. Analysts remind us that lasting price elevations are generally backed by strong user interest in the network. However, the current scenario suggests the opposite.
Contrarily, some analysts maintain an optimistic view. Analyst Gordon shared on his X account, “The XRP fractal looks strong; the rise will surprise many.” He projects a possibility of the price reaching $4.30. However, as seen in past instances, rises following long consolidations failed to be enduring without strong network data, leaving the issue of sustainable growth contentious.
According to data from CryptoAppsy, XRP was maintaining its position near the $3.00 mark, showing a 0.19% increase over the last 24 hours as of writing.
