XRP Price Rejection at $0.60 Signals Struggle for Further Gains
beincrypto.com 16 September 2024 09:23, UTC XRP has recorded a 9% price rally since September 6, pushing the altcoin’s price toward the wall of resistance formed at $0.60. However, as demand for the altcoin begins to taper off, history is poised to repeat itself. XRP may be unable to push past this crucial resistance level.
This article explores how the token’s on-chain and technical setup support this outlook.
Ripple Price Troubles Are Only a Few Days Old
XRP demand peaked on September 13 but has declined since. According to Santiment, daily active and new addresses for the token have decreased.
In the past three days, the number of wallet addresses completing at least one XRP transaction dropped by 18%, while new addresses created to trade the altcoin fell by 8% during the same period.
When an asset sees a decline in network activity, it usually means fewer addresses are interacting with its blockchain, signaling reduced interest. This has been the case with XRP, as its price began to drop alongside a decrease in daily active and new addresses. Currently trading at $0.57, XRP’s value has fallen by 3% over the past two days.
This decline has pushed XRP’s price below its 20-day exponential moving average (EMA), which reflects its average price over the past 20 trading days. Traders often consider the 20-day EMA a short-term support level, and a drop below it can indicate weakening upward momentum.
Read more: XRP ETF Explained: What It Is and How It Works
Moreover, market participants interpret a break below the 20-day EMA as a signal to exit long positions and take short ones as they anticipate a further price decline.
XRP Price Prediction: Token Seeks To Trade Below the “Cloud”
In addition to falling below the key 20-day EMA, XRP’s price has also slipped beneath the Leading Span A (green) of the Ichimoku Cloud, signaling weakening bullish momentum. If demand doesn’t pick up, the price could move toward the Leading Span B (red), a critical support level.
As XRP falls below Leading Span A, selling pressure may increase, pushing the altcoin into a more bearish zone. Approaching the Leading Span B marks another significant support level, and if this is breached, XRP could enter a deeper downtrend, potentially dropping to its August 5 low of $0.38.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if demand returns, XRP could regain bullish momentum, rising above the Leading Span A and the 20-day EMA. A successful retest of the $0.60 resistance level could pave the way for XRP’s price to climb toward $0.74.
