As the broader crypto market experiences volatility, XRP struggles to maintain support above the $2 mark. Despite some accumulation by long-term holders, technical indicators reveal lingering bearish momentum that could push the asset further down.
🧠 Long-Term Holders Accumulating Despite Uncertainty
One positive signal is the steady decline in the Liveliness metric since February 2024. This on-chain indicator measures the ratio of active coins versus dormant coins. A decreasing value implies that more holders are choosing to HODL rather than trade, suggesting long-term confidence in XRP’s future potential.
This accumulation trend indicates that whales and long-term investors may be preparing for a long-term rebound, even amid short-term bearish conditions.
📉 Technical Analysis: Bearish RSI and Critical Support Levels
From a technical perspective, XRP’s Relative Strength Index (RSI) has remained below the neutral 50 line for over two months. This consistent underperformance suggests continued bearish pressure.
Currently, XRP is trading at $2.08, hovering just above a crucial support level at $2.02. If this level fails to hold, the next key levels are $1.94 and potentially $1.79. A drop below $1.79 would invalidate any short-term bullish thesis and could lead to extended losses.
🔮 Outlook: What’s Next for XRP?
XRP needs to reclaim momentum to avoid deeper correction levels. Unless a bullish breakout occurs soon, technical and on-chain indicators suggest the price could dip below $2 in the near future.
Key Watch Points:
- RSI breakout above 50 = bullish signal
- Failure of $2.02 support = likely drop to $1.94 or $1.79
- Accumulation phase may support long-term recovery