The crypto asset market faces a new warning signal, as recent analyses suggest an imminent XRP price drop risk towards lower levels. Technical and fundamental data point to a 25% correction that would take the asset to 1.55 dollars. This bearish scenario has consolidated following the breakdown of key support levels in the last trading sessions.
According to eight-hour charts, the price of XRP has validated a descending triangle pattern. This bearish technical formation is usually characterized by flat support and a downward-sloping resistance, indicating selling pressure. Recently, the XRP/USD pair dropped below the critical support line located at 2.20 dollars. Likewise, bulls are attempting to keep the price above 2 dollars, but a breakdown could precipitate the value towards the target of 1.55 dollars by the end of November.
On the other hand, Glassnode distribution heatmaps point to strong resistance ahead. There is a large supply cluster trapped between 2.38 and 2.40 dollars, where nearly 3.23 billion XRP tokens were previously acquired. This technical barrier, reinforced by the 100-day simple moving average, hinders any immediate recovery. Furthermore, a bearish divergence is observed on the weekly chart between price and the Relative Strength Index (RSI). While the price rose, the RSI fell drastically from 92 to 68, suggesting exhaustion among buyers.
Can the current scarce liquidity sustain the asset’s value against pressure?
Price weakening is not the only worrying factor in this analysis. Activity on the Ledger network has decreased considerably over the last four months. On-chain data reveals that daily active addresses have fallen far below the high of 577,000 recorded in mid-June. Currently, with barely 44,000 active addresses, there is clear evidence of a significant loss of interest or confidence in the short term.
This reduction in user participation directly affects market liquidity. New addresses have also dropped, going from 13,500 on November 10 to only 4,000 daily at present. Historically, a decline in network activity usually precedes price stagnation or deep price corrections. With lower transaction volume, the market’s ability to absorb large sell orders diminishes, thus increasing volatility and risk for current investors.
Finally, the outlook for this cryptocurrency suggests extreme caution for traders in the coming weeks. The convergence of negative technical indicators and the lack of recent adoption reinforce the bearish thesis. If current support levels fail, it is highly probable that the market will seek liquidity in lower zones, confirming the projection towards 1.55 dollars before finding a stable floor.
