XRP Price is Vulnerable to Further Correction Below $2 in February
XRP has faced increasing selling pressure as bearish market conditions have pushed the altcoin to a monthly low. Investors looking for a recovery may be disappointed, as the altcoin remains vulnerable to further declines.
Weak market participation and negative momentum are signaling the potential for additional losses in the near term.
XRP Investors Are Skeptical
The Price Daily Active Addresses (DAA) Divergence indicator is currently flashing a sell signal. This bearish signal stems from a combination of falling prices and declining investor participation.
With fewer active addresses interacting with the network, buying momentum appears to be weakening, making XRP vulnerable to continued downside movement.
As the drawdown continues, investors are stepping back, further dampening buying interest. If this trend persists, it could accelerate XRP’s decline.
XRP’s Relative Strength Index (RSI) has dropped to a three-month low, reinforcing the strong bearish momentum. The RSI, which measures market strength, indicates that selling pressure is intensifying.
If this trend continues, XRP could soon enter the oversold zone, further limiting any chances of an immediate rebound.
A dip into the oversold territory typically suggests that an asset is undervalued, which can sometimes trigger a price recovery. However, XRP’s historical performance indicates that prolonged bearish conditions could extend losses before any meaningful reversal.
XRP Price Prediction: Bouncing Back Is The Key
XRP is currently trading at $2.37, holding above its critical support level of $2.33. The cryptocurrency has been on a consistent decline since the beginning of the month.
Despite temporary stabilization, bearish indicators suggest that XRP may struggle to recover without a significant shift in market momentum.
The ongoing downward trend suggests that a further decline is likely. If XRP loses its $2.33 support, the price could drop to $1.94, deepening investor losses. A break below this level would confirm extended bearish control, making recovery even more challenging in the near future.
However, a bounce off $2.33 could enable XRP price to reclaim the $2.70 resistance. If the altcoin successfully flips this level into support, it would invalidate the bearish outlook.
Such a move could restore investor confidence and open the door for a potential recovery in the coming weeks.
Disclaimer
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