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Investor confidence was shaken by XRP's sharp 40% drop, but on-chain data indicates that big holders are unconcerned. The fact that XRP's payment volume, number of active accounts and burned fees are all comparatively stable despite the steep sell-off suggests that whales might not be in haste to sell. XRP fell to $2.00 after hitting a local high of about $3.40.
It broke below important moving averages such as the 50 EMA at $2.61 and the 100 EMA at $2.15. The asset's ability to sustain its bullish structure is called into question by this sharp decline. The $2.00 level is serving as an essential psychological support at the moment. If it breaks, XRP may fall to the 200 EMA, which is located at $1.60.
A decline below this level would put XRP at grave risk of retracing even more, perhaps all the way to $120, a historically significant zone that served as prior resistance. To restore bullish momentum, XRP needs to recover $2.61. The trend is still bearish until XRP crosses back above $3.00, but a successful bounce from the 100 EMA at $2.15 might lead to a relief rally. Despite the recent price collapse, XRP's payment volume has stayed consistent when examining on-chain metrics.
Yuri MolchanThis shows consistent network usage and implies that significant transactions are still occurring. In a similar vein, the quantity of active accounts has not decreased significantly, indicating that XRP owners are not running away in droves. Usually, significant drops are followed by a drop in active addresses, but this is not the case in this instance. Burned XRP as fees, which stays at normal levels, is another important factor.
This metric would probably experience an unusual spike, indicating increased on-chain transaction activity if panic-selling were taking place on a large scale. The asset may be in for a prolonged decline; if XRP bulls are unable to hold the $2.00 support, the next key levels to keep an eye on are $1.60 and $1.20. However, XRP may have a chance to buck this vicious downward trend if buying pressure picks up and it regains $2.61.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Gamza Khanzadaev
Yuri Molchan
Dan Burgin
Vladislav Sopov