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XRP price is facing difficulties in sustaining its bullish momentum, which hinders its potential to reach a new all-time high (ATH).
Although the cryptocurrency market has been showing an upward trend recently, concerns remain about its ability to maintain a sustained upward momentum, especially as bearish sentiment starts to spread.
XRP Faces Bearish Outlook
Ripple CEO Brad Garlinghouse recently appeared on the "60 Minutes" program, where he discussed XRP and cryptocurrencies. When discussing the future regulatory challenges facing cryptocurrencies, Garlinghouse stated that Ripple has been calling for clear rules to be established.
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Garlinghouse stated: "We're not asking for no regulation. We're asking for sensible regulation."
Regulation in the cryptocurrency space has been a topic of concern for some time. However, with the pro-cryptocurrency Donald Trump taking office, cryptocurrency enthusiasts expected this situation might change.
Nevertheless, the outlook for XRP price is not particularly optimistic at the moment. Over the past few days, the price's daily active addresses (DAA) divergence has been sending sell signals. The price increase and declining participation (active addresses) are bearish signals for XRP.
Historically, such developments have led to price declines, and XRP may experience a similar situation this time. Long-term investors and XRP enthusiasts can use the bearish signals to hedge against this impact.
Additionally, the moving average convergence divergence (MACD) indicator also suggests a shift in momentum. After more than a month of positive momentum, the MACD is now showing signs of bearish pressure.
This shift indicates that the bullish trend in XRP has lost its steam, and the price direction may be about to reverse. Investors who were once optimistic about XRP's potential now face increasing uncertainty.
The decline in momentum suggests that XRP may struggle to break through key resistance levels. With the MACD generating a bearish crossover signal, many traders are reevaluating their positions. This shift suggests that XRP's price may face increased downward pressure, making it more difficult to reach the coveted new high above $3.31.
XRP Price Prediction: Maintaining Support is Crucial
XRP's price is currently at $2.14, down around 54% from its previous high of $3.31. While the Altcoin is holding above the critical $2.00 support level, the path to new highs seems fraught with challenges. The combination of weakening bullish momentum and increasing bearish sentiment suggests that the likelihood of a near-term breakthrough to $3.31 is low.
For XRP to maintain its bullish potential, it needs to stay above the $2.00 support level. However, if this support level is not held, the Altcoin could further decline, potentially reaching $1.28. Losing this level would significantly undermine XRP's chances of setting a new high.
Despite the bearish signals, if XRP can regain its footing and hold the $2.00 support level, there may be room for a rebound. Investors will closely monitor this level to assess the potential for a bounce-back. However, for now, the outlook appears uncertain, and significant resistance lies ahead.
