Key Takeaways:
XRP (XRP) Price expanded losses from sharp sale last week. Altcoin price dropped 1.78% in the last 24 hours to trade at $ 2.78 on Monday.
Sentiment at risk in the broader crypto market and a decline in onchain activity suggests XRP may remain stuck in a downtrend next week or two. However, a return can play if the basic levels of support are held.
XRP investors entered the risk-off mode
The Crypto Fear & Greed index now drops to the “fear” zone at 46, down from the “neutral” levels seen last week and “greed” within 30 days ago, reflecting the growing investor care, data from Alternative.me Shut up.
This fear is reflected in the decline in onchain activity, along with the number of active addresses that have fallen over the last few weeks, up to approximately 19,250 on Monday from $ 50,000 in mid-July.
Active addresses are a scale that tracks the number of wallets that actively interact with the XRP ledger (XRPL) by sending or receiving the XRP. Therefore, such a significant collapse indicates a decreased appetite, leaving the XRP vulnerable to the sale of pressure.
Related: XRP ‘Distribution’ phase will not change the price target of $ 20: Analyst
Refusal to investor’s interest has also proven significant pullback on futures Open interest (Oi) up to $ 7.7 billion from $ 10.94 billion at the same period.
Reducing OI indicates a lack of investor belief, perhaps increasing the likelihood of downtrend that continues for a short time.
$ 2.70 must be handled as a support for the XRP price
Despite the weak foundations, the technical prefits are a single rebound if the support of $ 2.70 holds. Otherwise, an extended drawdown towards $ 2 can play.
The XRP price chart forms a descending triangle pattern in its sunny chart since JUly rally to a multi-year high of $ 3.66.
A downward triangle chart pattern That develops after a strong -to -date is seen as an indicator of bearish return. As a rule, the setup is resolved when the price breaks below the level of flat support and has dropped a greater number of the maximum height of the triangle.
The bulls find it difficult to keep the XRP above the triangle support line at $ 2.70. If they succeed, the price can rise to break the upper trend to $ 3.09, which at the same time 50-day Simple moving average (SMA) and the retracement level of 0.618 Fibonacci.
This will confirm the bullish momentum and potential to trigger a rally towards the top of the existing chart pattern around $ 3.70.
The loss of $ 2.70 could trigger another seller-off, with the first defense line provided by the demand zone between $ 2.6 (the 100-day SMA) and $ 2.48 (the 200-day SMA).
A breakdown of this level will see the fall of the XRP price towards the target downside around $ 2.08 over the next few weeks, down 25% from the current price levels.
Heatmap of extermination shows XRP consumers stepped to $ 2.70. Large clusters of Ask orders also sit between $ 2.87 and $ 3.74.
As cointelegraph reportedMoving the average change of XRP (MACD) points to a potential bearish crossover in September, threatening a collapse to $ 2.17.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
