XRP's price is under pressure following a substantial token outflow from the network. This has led to decreased activity and challenges in overcoming significant resistance levels.
Token Outflow and Its Impact
A 730 million XRP outflow from the network's payment volume has been recorded, raising concerns about the sustainability of current price gains. The drop in transactional activity may indicate eroding investor confidence in the asset.
XRP Technical Analysis
XRP struggled to maintain its upward trajectory after attempting to surpass major resistance levels. The dynamic resistance provided by the 50-day and 100-day moving averages limits price recovery, leaving the asset around the $2.32 mark.
Future Trends and Risks
To regain bullish momentum, XRP needs to reclaim key levels at $2.50 and $2.70. Without significant increases in trading volume or whale accumulation, the asset may continue declining toward $2.10 or even $1.85.
The coming weeks are critical for XRP as market participants observe network activity and the token's ability to hold above important support levels.
