The News Crypto -
- XRP price recovers recent losses but struggles to rally further.
- Technical indicators suggest growing investor skepticism and potential selling pressure.
- Price action pivots around critical Fibonacci levels, with $0.52 as potential support and $0.63 as key resistance.
XRP finds itself at a critical juncture as it grapples with conflicting market forces and shifting investor sentiment. While the digital asset has managed to recoup recent losses incurred during the broader cryptocurrency market downturn, its struggle to build sustained upward momentum has raised concerns among market participants.
This tenuous recovery now faces additional headwinds as investors appear to be adopting a more cautious stance, potentially setting the stage for increased selling pressure.
The Chaikin Money Flow (CMF) indicator paints a particularly worrying picture for XRP bulls. Currently registering outflows at a monthly high, this metric suggests a significant exodus of funds from the asset.
Such elevated levels of outflows typically signal robust selling pressure in the market, potentially foreshadowing further price declines if the trend persists.
XRP price fails to instill confidence
Complementing the CMF data, the price daily active address (DAA) divergence has begun flashing sell signals. This technical indicator, which measures the relationship between price action and network activity, suggests a weakening in buying interest relative to selling pressure.
Source: Santiment
The convergence of declining participation and falling prices often heralds a shift towards bearish sentiment among investors, further compounding Ripple’s challenges.
From a price action perspective, XRP’s recent performance has done little to inspire confidence. The asset has twice failed to maintain a position above the crucial 38.2% Fibonacci Retracement level at $0.58 over the past four weeks. This repeated rejection at a key technical level underscores the current lack of conviction among buyers and highlights the fragility of XRP’s recent recovery.
As XRP currently trades in $0.57 range, the confluence of bearish indicators and technical resistance levels presents a challenging outlook.
This article was originally published on thenewscrypto.com
