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XRP’s recent bearish trends have raised concerns among investors, especially following a 7.9% decline since the weekend amidst an uncertain macroeconomic landscape.
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The crypto market is grappling with heightened volatility, as uncertainty surrounding Bitcoin has led to a surge in selling pressure across altcoins, including XRP.
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According to a recent report by COINOTAG, the net unrealized profit/loss (NUPL) for long-term XRP holders mirrors levels seen at the 2021 price peak, signaling potential caution for investors.
XRP faces significant resistance while bearish trends dominate; market uncertainty prevalent as analysts suggest a cautious outlook on long-term investments.
XRP Bulls Rebuffed from the $2.45 Resistance
XRP’s market structure has taken a bearish turn, making it challenging for bulls to advance past the crucial resistance level of $2.45. The recent drop of 7.9% since Saturday has exacerbated existing bearish sentiments, highlighted by technical indicators. The market’s momentum is currently hindered by the 20 and 50-day moving averages, which have established themselves as resistance levels.
Source: XRP/USDT on TradingView
The pivotal rejection from $3 earlier this month has prompted traders to closely monitor the Fibonacci retracement levels, which indicate that the 50% retracement coincides precisely with the current resistance point at $2.45. As of now, XRP’s price has remained below this threshold, with a prevailing bearish trend evident in the chart patterns.
On-Chain Metrics Provide Insight into Market Sentiment
Examining XRP’s on-chain activity, there have been notable fluctuations that reflect broader investor sentiment. The Chaikin Money Flow (CMF) remains above +0.05, suggesting that capital inflows are still relatively healthy despite recent price declines. As of the latest data, the CMF stood at +0.06, implying that while selling pressure is prominent, the potential for recovery is visible as selling volumes show weakness.
Source: Coinglass
The liquidation heatmap exposes two significant price levels at $2.2 and $2.37, both of which have the potential to influence market movements significantly. Given the current risk appetite of investors, a decline to the $2.2 mark appears probable in the near term, setting the stage for traders to consider longer positions targeting the resistance zone between $2.4 and $2.45.
Market Outlook and Strategic Considerations
Amid the overarching uncertainty in the crypto sector, XRP traders should remain vigilant, particularly regarding Bitcoin’s price movements. The bearish sentiment is likely to persist unless significant positive developments arise in the larger market. A move towards $2.2 may provide advantageous entry points for bulls looking to capitalize on potential recoveries, but caution is recommended given the broader market volatility.
Conclusion
To summarize, XRP’s performance has been subdued under bearish pressures, with resistance at $2.45 proving formidable. Investors should closely monitor market indicators and sentiment, as strategies may need adjustment based on BTC’s trajectory. With the potential for recovery on the horizon, the next few days will be critical for XRP’s bulls in their quest to regain momentum.
