XRP price has recently struggled to regain its bullish momentum amid the altcoin’s decline since early October. The altcoin initially traded well above $0.60, but has now fallen to $0.51, raising concerns among investors.
This decline indicates that the bearish trend may continue, making market participants cautious about XRP’s near-term outlook.
Ripple investor panic
The recent drop in XRP price can be mainly attributed to long-term holders (LTH) who reacted with uncertainty as the asset lost ground. A spike in ‘age-of-spending’ data reveals that these LTHs began moving their holdings immediately after the price drop. This indicates a degree of panic among experienced investors, suggesting that they are concerned about risk.
This panic-driven move among LTH highlights the fragile sentiment within the XRP investor community. The XRP market appears to be in a delicate position as experienced holders are showing signs of hesitation. The lack of confidence among LTHs could create further selling pressure and exacerbate the downtrend if sentiment does not stabilize.
Read more: XRP ETF explained: What it is and how it works
Elapsed time of consumed XRP. Source: Santiment
In terms of macro momentum, XRP’s network growth initially accelerated as the price began to fall, suggesting new investors are keen to enter the market at lower levels. . However, this initial optimism faded as the XRP price correction deepened. After that, network growth decreased, reflecting fewer new addresses joining the XRP network.
The decline in network growth indicates that XRP is losing momentum. Initially, the drop in prices led to a surge in new addresses, but as the value of XRP continued to fall, enthusiasm from potential buyers waned.
Growth of the XRP network. Source: Santiment
XRP Price Prediction: Paving the Way
XRP fell 5.6% on Friday and is working to reclaim the $0.52 support level. This level coincides with the 38.2% Fibonacci retracement line, making it an important marker for a potential upward move. If this support is secured, it could pave the way for a rally towards the $0.55 resistance and give XRP a chance to stabilize.
XRP is currently above the 23.6% Fibonacci line of $0.47, which is often seen as a bear market support floor. This level provides a foundation to prevent further drawdowns and helps XRP avoid more significant losses if market conditions stabilize.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
XRP price analysis. Source: TradingView
However, the lack of strong bullish signals poses a challenge for XRP’s recovery. If XRP is able to turn $0.52 into support, it could rebound to $0.55 against a bearish-neutral outlook.
Disclaimer
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