- Ripple’s CEO emphasizes the need for clearer crypto regulations, but XRP faces bearish signals as momentum wanes.
- The MACD indicator suggests a shift to bearish pressure for XRP, with a potential decline from current levels.
- XRP must hold the $2.00 support to avoid a deeper drop, with a possible decline to $1.28 if the support fails.
XRP price struggles as bearish momentum kicks in; the cryptocurrency faces crucial support levels that could determine its near-term trajectory.
XRP Faces Bearishness
Ripple CEO Brad Garlinghouse recently made an appearance on the program “60 Minutes,” where he discussed the future of crypto regulations. He emphasized the importance of the industry having clear rules in order to foster innovation and stability.
“We haven’t been asking to be deregulated. We’ve been asking to be regulated,” stated Garlinghouse.
The need for regulation in the crypto space has become increasingly urgent, particularly as various markets experience uncertainty. While there is optimism among crypto enthusiasts about potential legislation under pro-crypto leadership, the outlook for XRP’s price remains murky.
Recent activity in the market, notably the Price Daily Active Addresses (DAA) Divergence, has flashed a sell signal, indicating a bearish trend. The rising price combined with a decrease in active addresses is often a precursor to declines, as seen historically.
Long-term investors are encouraged to HODL amid these fluctuations, believing that patience may pay off despite current pressures.
XRP Price DAA Divergence. Source: Santiment
Furthermore, the Moving Average Convergence Divergence (MACD) has shifted from a bullish to a bearish trend, indicating increasing selling pressure.
This change raises concerns about XRP’s ability to maintain upward movements in price. A bearish crossover on the MACD suggests that significant resistance levels may emerge as traders reassess their positions.
XRP MACD. Source: TradingView
XRP Price Prediction: Keeping Supports Intact
Currently, XRP’s price is around $2.14, which places it approximately 54% below its all-time high of $3.31. Maintaining a position above the critical support level of $2.00 is essential for the altcoin’s potential recovery.
A break below this support level could lead to a further decline, with some analysts predicting a dip as low as $1.28. Losing this lower bound would be detrimental to XRP’s chances of regaining bullish momentum.
XRP Price Analysis. Source: TradingView
In conclusion, while bearish indicators such as declining momentum and deteriorating market conditions pose challenges, the ability of XRP to hold the $2.00 support level will be crucial in determining its near-term performance.
Conclusion
In summary, XRP is at a critical juncture where the balance of bullish and bearish signals will dictate the upcoming trends. If it can maintain its support and navigate through market volatility, there might still be potential for a rebound. However, vigilance and strategic positioning will be essential for investors during this uncertain period.
