Even though there have been a number of positive developments around Ripple, the price of XRP has not seen a significant recovery during this period. This is no surprise given that Bitcoin continues to struggle and altcoins are suffering as a result. Even now, coming out of the weekend, it appears that the XRP price decline is far from over. A major support level has been broken and the altcoin is now under threat from the most recent move.
Why XRP Price Could Fall Further
Crypto analyst RLinda shared an analysis of the XRP price, showing that there is strong bearish pressure on the cryptocurrency. This comes as uptrend support established last week was broken over the weekend, pushing the bulls back after recovery.
For now, however, the support trendline highlighted by the crypto analyst shows that the price has already broken through its major support above $1,452. This means that the risk of a downtrend has become greater. As the cryptocurrency came out of the weekend, it broke through another support at $1.4236, marking what could be the start of a new decline.
Now that XRP price appears to be in freefall, the next major support level lies just above $1.38. But even this position is tentative at best and bearish sentiment is still rampant. When split below, the crypto analyst points to $1.387 as the next area of interest.
Network usage is still struggling
Looking at the on-chain performance of XRP, it seems that price is not the only problem. Data shows that participation in the XRP Ledger has declined significantly, which usually coincides with investors eventually exiting an asset.
Daily XRP trading volumes are decreasing on all exchanges and similarly, trading volumes are also collapsing on the ledger. Even unique account numbers appear to have peaked and have now fallen below 12,000.
The XRP Ledger also appears to be struggling in the real-world asset (RWA) market, noting fewer than 4,000 holders on the network, according to data from RWA.xyz. All of this indicates that XRP is still stuck in a downtrend, and this could only be changed if there was a major reversal of the tide in the crypto market.
Featured image of Dall.E, chart by TradingView.com
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