What to Know:
- XRP’s price could drop to $1.55 based on a bearish descending triangle pattern.
- A bearish divergence from the weekly RSI suggests increasing downward momentum for XRP.
- Decreasing daily active addresses indicate lower network activity and potential sell-off risk.
XRP is showing signs of potential downward pressure as it trades below its value from the previous week, with multiple indicators suggesting a correction toward $1.55. The formation of a descending triangle pattern, bearish divergence, and declining network activity are all factors influencing this outlook. Investors should monitor these trends as they assess XRP’s near-term prospects.
The XRP price chart has confirmed a descending triangle pattern, which started when it fell below the $3 level in October. This pattern, characterized by a flat support level and a downward-sloping resistance line, typically resolves with the price breaking below the support and falling by the triangle’s maximum height. If XRP breaks below the $2 support level, it could potentially fall to $1.55 by the end of November.
A bearish divergence between XRP’s price and the relative strength index (RSI) further supports the potential downside. This divergence, observed on the weekly chart, indicates weakness in the prevailing uptrend. The RSI has since dropped, suggesting that market conditions favor further declines, with the 50-week SMA at $2.32 acting as a stiff resistance.
Network activity on the XRP Ledger has been subdued over the past few months, with daily active addresses (DAAs) significantly below their peak in June. Declining user transactions and new addresses suggest reduced interest and a potential lack of confidence in XRP’s near-term outlook. Historically, such declines in network activity have preceded price stagnation or drops.
Source: Original article
