XRP has been consolidating over the past few days, maintaining levels above $2. However, after confirming a four-month downtrend earlier this month, this altcoin is struggling to maintain its current position.
As investor interest declines, XRP may find it difficult to maintain its upward momentum.
XRP Loses Investor Interest
A new address related to XRP has reached a five-month low, indicating a decrease in new investor interest. This suggests that XRP is losing its market position and that new capital is not flowing into the asset. Without new buyers, XRP may find it challenging to maintain levels above $2.
The decline in demand is concerning, as XRP's price growth is often supported by new market participants. With fewer investors entering the market, the altcoin may experience a prolonged period of stagnation. Without changes in demand, XRP's ability to maintain its price level could be threatened.
XRP's overall macro momentum is reflected in technical indicators like RSI, showing weakness. The RSI, currently below the neutral line of 50.0, suggests that XRP is still in a bearish zone. This indicates a lack of bullish momentum, which could prevent the altcoin from seeing significant short-term gains.
Moreover, the overall market sentiment remains bearish, which further impacts XRP's potential for recovery. Unless the market reverses or the altcoin finds new sources of demand, XRP's price is likely to remain suppressed.
XRP Faces Price Adjustment
XRP's price is currently at $2.10, sitting above the support level of $2.02 but facing resistance at $2.16. The downtrend that has continued since the beginning of the year is putting significant pressure on the altcoin. If the price fails to break through the resistance, XRP may attempt higher prices.
The current market conditions may prevent XRP from surpassing $2.16. However, if the price loses the $2.02 support level, it could drop to the next support at $1.94. In this scenario, the altcoin may experience a larger decline, potentially falling to as low as $1.79.
On the other hand, if XRP breaks through the $2.16 resistance, it could rise to $2.27. With changes in investor sentiment and market conditions, this could potentially push the altcoin to $2.40, invalidating the bearish outlook.
