In recent times, XRP has struggled to break past its significant resistance at $3.10, impacting its bullish momentum. Despite some indicators suggesting a potential rise to $4.30, overall user activity on the blockchain network remains subdued. Experts warn that without substantial network engagement, a sustained upward trajectory for XRP appears improbable.
Why Is XRP Struggling?
In late July, XRP’s chart indicated an inverted head and shoulders pattern, often a sign of a shift in market direction. Yet, the expected price rally did not unfold. As noted by analyst BitGuru, “Despite the inverted head and shoulders formation, XRP’s price could not maintain its momentum.” This situation mirrors the current market instability.
Repetitive attempts to surpass the $3.10 resistance in August were met with robust selling pressure, thereby continuing the descending trend since July. Currently, the market faces heightened uncertainty, with no robust movements past the resistance barrier.
What Does the Data Suggest?
The number of active addresses on the XRP network sharply declined to 38,303 by August 27 according to Glassnode. Previously, in June, these numbers had soared beyond 500,000 before taking a downturn. The drop signals inadequate backing for current price activities.
The scenario illustrates that significant price hikes generally require strong user participation, which is presently lacking for XRP. Some analysts remain hopeful, with Gordon expressing, “The XRP fractal looks strong; the rise will surprise many,” suggesting a potential climb to $4.30. Yet, such growth might be unsustainable without enhanced network data.
Listed below are noteworthy insights from the recent data and observations:
- XRP’s struggle at the $3.10 resistance perpetuates a downward trend.
- Active network addresses have notably decreased from June levels.
- Price movements are not backed by corresponding network activity.
- The market remains stagnant around the $3.00 mark with little uplift.
As it stands, the price of XRP maintains a steady position around the $3.00 region, displaying a marginal increase of 0.19% in the last day. Moving forward, the price trajectory of XRP will largely depend on how the resistance level is tackled amid fluctuating network activity.
