XRP faces significant challenges in breaking the price resistance at $3.10, negatively impacting its upward trend. This article examines the reasons for this situation and provides analytical insights.
Why Is XRP Struggling?
Since late July, XRP's chart has indicated an inverted head and shoulders pattern, often predicting market changes. However, the expected price rally did not materialize. As analyst BitGuru noted, 'Despite the inverted head and shoulders formation, XRP’s price could not maintain its momentum.' This situation reflects the current market instability.
What Does the Data Suggest?
The number of active addresses on the XRP network sharply declined to 38,303 by August 27 according to Glassnode. Previously, in June, these numbers soared beyond 500,000 before declining. The decrease indicates inadequate support for current price activities. Analysts point out that significant price hikes typically require strong user participation, which is currently lacking.
Trends and Future Projections
As of now, the price of XRP remains steady around the $3.00 mark, displaying a marginal increase of 0.19% in the last day. The future price trajectory of XRP will largely depend on how the resistance level is tackled amid fluctuating network activity. Analyst Gordon expressed, 'The XRP fractal looks strong; the rise will surprise many,' although such growth may be unsustainable without enhanced network data.
Thus, XRP continues to face difficulties in surpassing the $3.10 level, and further growth will be dependent on increased user activity. Despite some optimistic predictions, current conditions indicate a need for sustained support from network participants.
