XRP's prices have significantly dropped over the past month, network activity has declined, and demand from investors has weakened. Let's analyze the current situation and potential market changes.
Price Decline of XRP
XRP's price has fallen by 16.8% over the past month, trading at $2.93, which is 19% higher than the last three months. The market capitalization of the cryptocurrency stands at $173.8 billion, with a daily trading volume of $6.4 billion.
Market Activity Data
Data from Nansen indicates that the balance of XRP held by 'smart money' investors has dropped by 80% over the last 30 days. The reduction in assets among these investors often precedes market downturns, potentially amplifying negative trends. Moreover, according to CoinGlass, the open interest for XRP futures has decreased from $10.94 billion in July to $7.56 billion, indicating reduced speculation among investors.
Technical Analysis and Forecasts
On the daily chart, XRP has fallen below the 20-day and 50-day moving averages, indicating a dominance of bearish momentum. The Aroon indicator signals a strong bearish trend, while the divergence in the relative strength index (RSI) indicates weakness in the prevailing uptrend. Given these conditions, XRP may test the $2.70 level, which previously acted as key support.
Current data suggests the likelihood of further corrections for XRP. Investors should closely monitor support levels and market activity developments.
