XRP continues to show severe price weakness, and analysis now suggests a further sideways trend to a 12-month low.
XRP has dropped below the $2 psychological level, owing to an 8% pullback in the past 24 hours. This brings its weekly loss to 15%, making it unprofitable for those who bought at the start of the year.
XRP Risks Further Correction
Meanwhile, the downward momentum has persisted, with whale sell-offs and a broader market trend exerting bearish pressure. Despite its already significant correction, a recent analysis predicts steeper declines in XRP price.
A look at the 8-hour chart on the XRPUSD pair shows that XRP has been forming a descending triangle since a high of $3.10 on October 2. The shape has contained the price since then until it broke down on November 17.
XRP retested the triangle’s lower support around $2.20 but could not reclaim it, breeding further corrections. With the demand zone and the $2 level now lost, all indicators suggest the bearish momentum could continue to a 12-month low of $1.55, marking an 18% correction from the current market price of $1.90.
Bearish Divergence Support Dump Narrative
Additionally, a bearish divergence on the weekly chart further confirms the downward momentum. XRP has been trading within an ascending channel since November 2024, making higher highs and higher lows.
However, the weekly relative strength index (RSI) has made lower highs in the same timeframe. This diverging development suggests a weak price uptrend, often preceding an intense correction. XRP has already broken below the ascending channel, confirming the bearish prospects.
Weak Network Activity on the XRP Ledger
Meanwhile, user traction towards the XRP Ledger has receded drastically over the past four months, contributing to the price weakness. Data from Glassnode shows that the daily active addresses on the Ledger have dropped from around 577,134 seen in mid-June to 50,725 currently.
Notably, this 91% drop indicates a lack of user interest, likely due to growing market uncertainty.
A drop in the number of new addresses on the network also confirms this lackluster disposition. After a spike to around 13,527 on November 11, the daily new user influx has reduced to 5,780 at the time of writing.
Such drops have historically contributed to a decline in trading volume and liquidity, leading to price stagnation or decline.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
