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XRP price recently struggled to regain bullish momentum, with the altcoin declining since the start of October. Initially trading well above $0.60, the altcoin has now dipped to $0.51, raising concerns among investors.
This drop indicates a potential continuation of bearish sentiment, leaving market participants cautious about XRP’s near-term outlook.
Ripple Investors Panic
The recent decline in XRP’s price can largely be attributed to long-term holders (LTHs) who reacted with uncertainty as the asset lost ground. The spike in “age consumed” data reveals that these LTHs began moving their holdings immediately following the price drop. This indicates a level of panic among seasoned investors, suggesting they were concerned about risks.
This panic-driven movement among LTHs highlights the fragile sentiment within XRP’s investor community. With experienced holders showing signs of hesitation, XRP’s market appears to be in a delicate position. The lack of confidence among LTHs may create additional selling pressure, potentially exacerbating the downward trend if sentiment does not stabilize.
In terms of macro momentum, XRP’s network growth initially saw a boost as its price began to decline, suggesting that new investors were eager to enter the market at lower levels. However, as XRP’s price correction deepened, this initial optimism waned. Network growth has since declined, reflecting a reduction in new addresses joining the XRP network.
The decline in network growth indicates that XRP may be losing traction. While new addresses initially surged in response to lower prices, the continued drop in XRP’s value has tempered enthusiasm among potential buyers.
XRP Price Prediction: Paving Its Way
XRP fell by 5.6% on Friday and is working to reclaim $0.52 as a support level. This level aligns with the 38.2% Fibonacci Retracement line, making it a crucial marker for any potential upward movement. Securing this support could pave the way for a rise toward the $0.55 resistance, offering XRP a chance to stabilize.
Currently, XRP is holding above the 23.6% Fibonacci line at $0.47, often seen as the bear market support floor. This level provides a foundation that could prevent a further drawdown, helping XRP avoid more significant losses if market conditions remain stable.
However, the lack of strong, bullish signals presents a challenge for XRP’s recovery. If XRP manages to flip $0.52 into support, it could rally back to $0.55, countering the bearish-neutral outlook.