XRP has been faced with significant volatility in recent weeks, the action of prices without clear momentum. Altcoin had a hard time maintaining upward momentum because wider market conditions remained hinged.
Despite the recovery attempts, the feeling of investors has remained weak, preventing any substantial movement. The result was a strong lack of support, many investors hesitating to make decisions.
XRP loses the interest of the investor
The feeling of the XRP market reflects the current uncertainty, with active addresses showing a significant drop in participation. In recent days, investor conviction has declined, largely due to the lowering market signals. Consequently, the number of active addresses has gone from a recent summit of 530,000 to only 123,000, which quickly indicates interest in Altcoin.
The drop in participation highlights the reluctance of investors to fully engage with XRP. While investors are retreating, liquidity becomes more and more limited, which further reduces the potential of any substantial price rebound.
XRP’s macro momentum has also been assigned by wider market conditions, although long -term holders (LTH) remain a critical force to support the price. The long / short difference in the MVRV shows that LTHs are seated in considerable profits at the moment. These investors have kept their positions rather than selling at low prices, providing support to XRP and preventing new price reductions.
Their continuous maintenance behavior has become crucial to maintain the price above critical support levels. As a final defense line for XRP, these LTHs prevent a potential accident below $ 2.
The XRP price aims at the recovery
The XRP price is currently $ 2.17, holding above the support level of $ 2.14. Despite an accident of 22% in recent weeks, Altcoin has managed to maintain its position above the critical bar of $ 2.00. Although the current level is promising, the violation of the barrier of $ 2.33 can prove difficult due to the lack of strong bull signals on the market.
Given the current market conditions and the feeling of investors, XRP should continue to consolidate in the range of $ 2.33 and $ 2.14. A breach in both directions will depend on the broader market capacity to resume momentum. Until then, XRP can be stuck in this narrow beach.
However, if XRP falls below the support level of $ 2.14, the price could slide at $ 1.94. Such a drop would invalidate neutral perspectives, pushing altcoin into a more downward trend. A decrease to $ 1.94 would lead to a new loss of confidence, which makes recovery even more difficult.
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