XRP Price Recovery Under Threat as Investor Sentiment Sours
The recent recovery in XRP price, along with the broader cryptocurrency market, is facing challenges that could jeopardize the gains made. Investor sentiment is turning cautious, increasing the risk of a potential sell-off.
Changing Tides: XRP Investor Position Shift
The weakening XRP price is already susceptible to negative signals that could amplify its downturn. The Chaikin Fund Flow (CMF) for XRP is showing new monthly highs in outflows, indicating a trend of investor withdrawals and heightened selling pressure.
Similarly, the Price Daily Active Address (DAA) differences are signaling sell indicators, suggesting a shift towards increased selling activity. This divergence between buying and selling pressure reflects growing pessimism among investors regarding market sentiment.
XRP Price Outlook: Support Levels Tested
Despite attempts to break above the 38.2% Fibonacci retracement level at $0.58, XRP price has failed to sustain upward momentum. The coin’s struggle to overcome this resistance level highlights diminishing confidence among investors and in the market.
If bearish signals persist, XRP could face further downside pressure, possibly dropping from $0.57 to $0.52, testing critical support at $0.52. On the flip side, reclaiming the $0.58 support could pave the way for a breakout above the $0.63 resistance, signaling a potential shift in momentum.
The information contained in this article is for informational purposes only and should not be construed as investment advice. Users are advised to conduct their own research and consult with a financial advisor before making any investment decisions.
