What to Know:
- XRP is experiencing downward pressure, currently trading below $2.15 amid rising anxiety among long-term holders.
- Key support levels to watch are $1.91 and $1.73, representing price points where significant volumes of XRP were previously traded.
- Technical analysis presents mixed signals, with some analysts noting bullish divergences and repeat patterns that could lead to upward movement if key levels hold.
XRP is facing selling pressure, recently dropping below $2.15 after a weekly decline. On-chain metrics suggest increasing anxiety among holders, placing crucial support levels in focus for traders and investors. Monitoring these levels will be important as the market navigates potential further downside.
Long-term XRP holders are exhibiting signs of concern, shifting from euphoria to anxiety as indicated by the Net Unrealized Profit/Loss (NUPL) metric. This sentiment change reflects eroding gains for many holders, potentially leading to further declines if the trend continues. The next phases on the NUPL curve are fear, followed by capitulation, which could amplify selling pressure.
Anxiety is creeping in as $XRP flirts with a drop below $2.
Recent data reveals that nearly half of the XRP supply is now held at a loss, suggesting that late buyers are under pressure. The token has also entered oversold territory, which increases short-term risk. Should the price decline further, key support levels at $1.91 and $1.73 could act as buffers, as many holders may be reluctant to sell below their initial cost basis.
Below $2.15, the next key $XRP levels are:
• $1.91
• $1.73 pic.twitter.com/jZHPv3I9EW
Technical analysis offers a mixed outlook, with some analysts identifying bullish signals amid the uncertainty. CryptoWZRD noted a bullish close on the daily chart, suggesting a potential move toward $2.41 if XRP can surpass $2.28. EGRAG CRYPTO pointed out a bullish divergence on the 3-day chart, indicating possible strength that could lead to a broader market recovery.
If it plays out… it could become your exit plan and the rest of the market will likely follow.
Overall, XRP is at a critical juncture, with on-chain data highlighting investor caution and technical analysis presenting conflicting signals. Monitoring the key support levels and any potential shifts in market sentiment will be crucial for investors navigating the current environment. The broader crypto market, including Bitcoin and regulatory developments, could also influence XRP’s trajectory.
Source: Original article
