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XRP struggles to break $0.60 as demand weakens and price drops

XRP struggles to break $0.60 as demand weakens and price drops

GrafaGrafa2024/09/16 20:25
By:Mahathir Bayena

XRP (CRYPTO:XRP) has faced a significant price rejection at the $0.60 resistance level, suggesting a potential struggle for further gains. 

The altcoin recorded a 9% rally since September 6, reaching close to the $0.60 mark. 

However, declining network activity and a reduction in active addresses indicate waning demand, causing the price to drop to $0.57 over the past few days.

Data from Santiment shows that the number of XRP wallet addresses completing at least one transaction decreased by 18% in the last three days, while new addresses created to trade the altcoin fell by 8% in the same period. 

This decline in network activity suggests reduced interest in the asset, leading to a decrease in price. 

XRP's price has also slipped below its 20-day exponential moving average (EMA), a key short-term support level. 

Traders often view a break below the 20-day EMA as an indicator of weakening upward momentum, prompting them to exit long positions and consider short ones in anticipation of further price declines. 

Additionally, XRP's price has fallen below the Leading Span A (green) of the Ichimoku Cloud, signaling diminishing bullish momentum.

If XRP continues to decline and falls toward the Leading Span B (red), a critical support level, it may face increased selling pressure. 

Should it breach this level, XRP could potentially drop to its August 5 low of $0.38. 

However, if demand picks up again, XRP could regain momentum and rise above both the Leading Span A and the 20-day EMA. 

A successful retest of the $0.60 resistance level could then pave the way for XRP to target the $0.74 mark.

At the time of reporting, the XRP price was $0.5853.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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