Even though there have been a number of positive developments surrounding Ripple, the XRP price has not seen any meaningful recovery during this time. This is no surprise given the fact that Bitcoin continues to struggle and altcoins are suffering as a result. Even now, coming out of the weekend, it seems that the XRP price decline is far from over. A major support level has been broken, and the altcoin is now being threatened by the most recent move.
Why XRP Price Could Crash Further
Crypto analyst RLinda shared an analysis on the XRP price, showing that there is a lot of bearish pressure on the cryptocurrency. This comes as the uptrend support that was established last week was broken over the weekend, pushing back the bulls after the recovery.
For now, though, the support trendline highlighted by the crypto analyst shows that the price has already broken its major support above $1.452. What this means is that the risk of a downtrend has become greater. As the cryptocurrency was coming out of the weekend, it broke through another support at $1.4236, marking what could be the beginning of another decline.
Now, with the XRP price looking to be in free fall, the next major support level lies just above $1.38. But even this hold is tentative at best and the bearish sentiment is still rampant. Once broken below, then the crypto analyst calls out $1.387 as the next area of interest.
Network Usage Still Struggling
Looking at the on-chain performance of XRP, it seems that the price is not the only thing that has been struggling. Data shows that participation on the XRP Ledger has dropped drastically, something that usually coincides with investors eventually pulling away from an asset.
XRP daily trading volumes are falling across exchanges, and likewise, the transaction volumes are also crashing on the ledger. Even unique account numbers seemed to have peaked and have now crashed toward the 12,000 mark.
The XRP Ledger also seems to be struggling in the Real World Assets (RWA) market, noting less than 4,000 holders on the network, data from RWA.xyz shows. All of these point to the fact that XRP is still stuck in a bear trend, and this could only be changed if there is a major turn in the tide in the crypto market.
Featured image from Dall.E, chart from TradingView.com
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