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XRP price has faced difficulties in continuing its bullish momentum, which has halted its potential for setting a new all-time high (ATH).
Despite recent upward movements, the cryptocurrency’s struggle to maintain consistent gains has raised concerns, especially as bearish sentiment begins to gain traction.
XRP Faces Bearishness
Ripple CEO Brad Garlinghouse recently made an appearance on the program “60 minutes”, where he talked about XRP and crypto. Discussing the future of crypto in regard to the regulatory challenges, Garlinghouse stated that Ripple has been demanding clear rules for the road.
“We haven’t been asking to be deregulated. We’ve been asking to be regulated,” stated Garlinghouse.
Regulation of the crypto space has been a subject of concern for some time now. However, with pro-crypto Donald Trump taking office, crypto enthusiasts are expecting this could change.
Nonetheless, the outlook for XRP price is not exceptionally bullish at the moment. The Price Daily Active Addresses (DAA) Divergence has been flashing a sell signal for the last couple of days. The rising price and declining participation (active addresses) is a bearish sign for XRP.
Historically, this development has led to a price drop, and the same could be the case with XRP this time around. This can be countered by long-term investors and XRP enthusiasts who intend to HODL through the bearishness.
Additionally, the Moving Average Convergence Divergence (MACD) indicator is also signaling a shift in momentum. After more than a month of positive momentum, the MACD is now showing signs of bearish pressure.
This shift suggests that XRP’s bullish trend has lost steam, and a reversal in price direction could be imminent. Investors, once optimistic about XRP’s potential, are now facing increased uncertainty.
The decline in momentum indicates that XRP might face difficulties in pushing past key resistance levels. With the MACD signaling a bearish crossover, many traders are reassessing their positions. This shift suggests that XRP’s price could encounter more downside pressure, making it harder to reach the coveted new ATH above $3.31.
XRP Price Prediction: Keeping Supports Intact
XRP’s price currently stands at $2.14, approximately 54% away from its previous ATH of $3.31. While the altcoin holds above the critical $2.00 support level, the road to a new ATH seems challenging. The combination of waning bullish momentum and growing bearish sentiment suggests that a move past $3.31 may be unlikely in the near future.
For XRP to maintain any bullish potential, it needs to stay above the $2.00 support level. However, if this support level fails to hold, the altcoin could experience a deeper decline, possibly reaching $1.28. Losing this level would seriously undermine any chances of XRP reaching new heights.
Despite the bearish signals, if XRP can regain its footing and defend the $2.00 support, there could be room for a rebound. Investors will closely monitor this level to gauge if a recovery is possible. However, for now, the outlook appears uncertain, with significant resistance ahead.