The XRP price fluctuates at the $2.00 mark, with Altcoin exceeding $2.08 at the time of writing. However, there is growing concern that increasing price action volatility could lead to below the critical $2 level.
Investor sentiment can ultimately determine whether XRP is still at its current level or is experiencing a decline.
Rescue XRP holder
XRP has recently seen a huge surge in active addresses, a sign of increasing volatility. Historically, the increase in active addresses has correlated with significant price movements. As the number of active addresses increases, XRP price actions become more unpredictable, increasing the likelihood of sharp movements in either direction.
This enhanced volatility reflects the uncertainty surrounding XRP’s future. In particular, Altcoin is approaching its main level of support. As active addresses continue to rise, XRP prices may change significantly depending on whether they come with buying and selling pressure.
The vibrant indicators of XRP are currently on a consistent downtick, indicating that long-term holders (LTHS) are accumulating more and more than they sell. At its six-month low, this indicator suggests that LTH is confident in the long-term potential of XRP. This has a stabilizing effect on the price. As LTHS holds its ground, this support will help buffer against extreme volatility.
The accumulation through LTHS shows that investors are not easily influenced by short-term price fluctuations. This investor’s behavior is bullish for XRP as it reflects Altcoin’s confidence in the future.
XRP price should find stability
At the time of writing, the XRP priced at $2.09, exceeding the local support level of $2.08. Altcoin was able to maintain this level, but remains vulnerable to ongoing market volatility. If the bearish momentum increases, the XRP can go below $2.08, which can cause further downward movement.
As the wider market situation weakens, XRP prices could fall to the $2.02 range or to a critical level of $2.00. Because this is a psychological support point for many investors, drops below $2.00 can cause panic sales. This can exacerbate losses and cause pressure to be applied on the downside.
However, bounces from a support level of $2.08 could provide the momentum needed to get your XRP back to $2.13. The presence of LTH support can play a key role in stabilizing prices and driving rebounds. If XRP can support $2.13 and flip, it could disable the bearish outlook and move to $2.23.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
