XRP May Fall Under $3 Before Reaching New All-Time High
XRP's rally to $3.40 has stalled, with bearish signals hinting at a correction. Can it hold $3, or will $2.73 become the next support level?
XRP recently achieved a new all-time high (ATH) of $3.40 during a two-week bull run, marking a significant milestone in the cryptocurrency’s history. However, this upward trajectory appears to have hit a ceiling.
All indicators now suggest a period of correction before XRP can attempt to repeat such performance. The token, currently trading at $3.11, seems to be stabilizing but shows signs of vulnerability.
XRP Could Witness A Drop
One of the key signals pointing toward a potential correction is the Price Daily Active Addresses (DAA) Divergence, which is flashing a sell signal. Despite the bullish price action, the number of active wallet addresses interacting with XRP has seen a noticeable decline. This divergence between price and participation is often a sign of waning investor interest, which could lead to a negative impact on XRP’s price.
The decreasing participation is concerning because it highlights reduced market engagement at a time when XRP would benefit most from strong support. If this trend continues, it could undermine the token’s ability to sustain current price levels, leaving it exposed to further declines.
XRP Price DAA Divergence. Source:
Santiment
On the technical side, the Moving Average Convergence Divergence (MACD) indicator has recently noted a bearish crossover. This shift comes just two weeks after XRP’s bullish momentum led to its latest ATH. While the previous rally was short-lived, it was impactful enough to push XRP into new price territory.
However, the bearish crossover on the MACD suggests that the broader market momentum is beginning to weaken. Without renewed buying pressure or positive market cues, XRP is likely to experience a price decline.
XRP MACD. Source:
TradingView
XRP Price Prediction: Looking For Support
XRP’s recent ATH of $3.40 has not been followed by a major selloff, with the token now trading at $3.11. At this level, the price seems to be stabilizing. However, the current trends suggest this stabilization may be temporary.
Given the sell signals from DAA Divergence and the bearish MACD crossover, XRP could face a correction in the near term. The price may fall to $2.73, dipping below the $3.00 mark before finding support and bouncing back. This correction would provide a more solid foundation for a future rally.
XRP Price Analysis. Source:
TradingView
On the other hand, a shift in broader market conditions could tilt the balance toward bullishness. If XRP breaches its ATH of $3.40, it would invalidate the bearish outlook and pave the way for a new ATH. Such an outcome would depend heavily on increased market participation and a surge in investor confidence.
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.
You may also like
US Treasury yield curve approaches inversion! Is the bond market questioning the outlook for the US economy?
The U.S. Treasury yield curve is rapidly approaching the inversion threshold—the spread between the 10-year and 2-year yields has narrowed to historic lows, and bank stocks have responded with a technical correction. This warning signal, regarded as a "hard rule" for recession, is tearing apart market consensus: some are betting the curve will soon invert, while others firmly believe economic resilience will mitigate the risk. Amid ongoing Federal Reserve rate hikes, the outcome of this bond market game may reshape the narrative logic of the entire asset market.
From ICU to KTV! The Polarized "AI Narrative" Leaves Investors "Exhausted"
In just two weeks, the Nasdaq 100 experienced an extreme rollercoaster: first losing $600 billion in market value due to “AI threat” concerns, then rebounding to reclaim $3 trillion thanks to the viral Meta assistant. Analysts believe that market sentiment is swinging violently between fear and greed, detached from fundamentals. The turmoil has driven Nvidia’s valuation to a ten-year low, intensified the bull-bear divide, and the high volatility driven by narratives has become a long-term norm for investors. This week, Micron will release its financial report; regardless of the outcome, the sharp swings in market sentiment are unlikely to subside.
Weekly Preview: Micron (MU.US) earnings test the quality of AI infrastructure, OpenAI and White House AI meeting resonance, PCE and Nonfarm Payrolls set the tone for October interest rates
This week, the market's focus will shift from politics and product launches to financial reports and macroeconomic data.
"Over 5% 10-Year US Treasury Yield" Fails to Crush AI Investment Frenzy—Is the Real "AI Kill Line" an Inverted Yield Curve?
The bond market is gradually sending warning signals to the economy, indicating that the Federal Reserve's series of interest rate hikes will begin to shift market sentiment, making people increasingly concerned that the US economy may fall into stagnation.
Crypto prices
More
