XRP Struggles to Stay Above $0.60 as Selling Pressure Mounts
XRP Faces Headwinds as Market Rally Continues
While the broader cryptocurrency market has seen a surge in price action following the Federal Reserve’s recent interest rate cut, XRP has struggled to keep pace. Despite the positive market sentiment, XRP has only managed a modest 2% increase, lagging behind other altcoins. This underperformance has sparked concerns among analysts and investors, with some attributing it to growing interest in other projects, diverting attention and capital away from XRP.
Further adding to these concerns, data from on-chain analytics firm Santiment reveals a notable drop in user engagement on the XRP Ledger blockchain. This decline in user participation, a crucial indicator of a project’s health and growth, has fueled fears within the XRP community as they watch other altcoins experience double-digit gains.
Signs of a Potential Retracement
XRP is currently trading below the critical $0.60 mark, a psychological level that has acted as resistance for the past few months. While the altcoin initially benefited from the broader bullish sentiment, its weakening market signals suggest it may struggle to sustain this momentum. The decline in user engagement on the XRP Ledger blockchain is a concerning indicator, with Santiment data showing that XRP’s price Daily Active Addresses (DAA) divergence dropped to -74.46% yesterday.
This divergence, which measures whether user participation is increasing alongside the price, indicates a potential weakness in the recent uptrend. A declining DAA, especially when the price is rising, is a bearish signal, suggesting that the price increase may not be sustainable.
Crucial Price Levels to Watch
XRP is currently trading at $0.589, after two weeks of sideways movement between $0.57 and $0.59. Despite several attempts, the price has failed to break above the crucial $0.60 resistance level, leaving it at risk of a downturn. XRP is currently approximately 6% above its daily 200 moving average (MA), which sits at $0.548—a critical support level that has provided stability in the past.
For bullish momentum to build, XRP must break past the $0.60 barrier and aim for higher supply levels around $0.65. This move would signal renewed strength and potentially trigger a more substantial rally. However, the current price action appears weak, with limited upward momentum. If XRP fails to hold above the $0.60 level, a retest of lower demand zones around $0.55 is expected.
The Future of XRP
The worst-case scenario for XRP would be an extended period of this sideways range, lacking a decisive breakout in either direction. Such prolonged consolidation could increase selling pressure, driving the price lower. Investors and analysts are watching closely to see if XRP can reclaim the $0.60 level, initiate a new uptrend, or face further declines. The next few weeks will be crucial in determining the direction of XRP’s future price action.