The price of Ripple (XRP) may face a delay before experiencing a breakout and a significant increase. This is due to investors' hesitation to hold onto their investments for potential gains, opting instead to sell.
Investors in Ripple Lack Optimism
Since investors in the altcoin have been acting somewhat pessimistic, the price of XRP may take the brunt of their mistrust. Since December 2023, the number of active addresses has been declining; this trend is still continuing.
A market deviation that is bearish is typically caused by declining participation and rising prices. A sell signal is flashed by this deviation, which is not good news for the price activity. This also applies to XRP, as investors using the network to perform transactions are not expecting a breakout in price.
Additional indications of this attitude are also evident among whale holders, who have been overtly pessimistic for about a week.
Their selling resulted in a price decrease, but their accumulation raised the price. XRP whales are currently selling after dumping over 300,000 XRP in the previous two weeks.
roughly 4% of their total 6.44 billion XRP holding is represented by this supply, which is valued at roughly $156 million.
Such selling is a very negative indication for the price of XRP, and the altcoin may pay the price for it.
XRP Price Forecast: Challenging Times Ahead
As of this writing, XRP is trading above the 23.6% Fibonacci Retracement, which is located at $0.51, at $0.53. If it breaks out, the altcoin is aiming for a 12% increase while staying inside the ascending triangle. The native Ripple token may rise over the 38.2% Fibonacci retracement line as a result.
But given the previously listed variables, a bearish conclusion seems plausible. The price of XRP may drop to the pattern's bottom trend line, and a test of the 23.6% Fib level is also possible.
However, the above-mentioned bullish result could potentially have an impact on the price of XRP in the future if a breakout happens. This is significant because it would allow XRP to continue rising and make up for its recent losses.
May 2024, Cryptoniteuae