- The number of active addresses in the XRP blockchain has significantly decreased in the past two weeks.
- The digital asset faces a strong resistance level ahead.
- If XRP bulls can hold a significant support point, Ripple could see massive upswing.
XRP had a colossal 44% upswing in the last three days after a significant correction down to $1. Unfortunately, it seems that investors aren’t as interested in XRP anymore, despite SEC fears fading away.
XRP price could see massive rejection
On the daily chart, XRP price got rejected from the 61.8% Fibonacci retracement level at $1.37. This could drive the digital asset down to the 50% Fibonacci level at $1.19.
XRP/USD daily chart
To further add credence to this outlook, we can check that the number of active addresses for XRP has been in a significant downtrend since April 14. This indicates that investors are less and less interested in purchasing or trading with XRP.
XRP Active Addresses chart
However, on the 4-hour chart, XRP formed a descending wedge pattern which can be drawn by connecting the lower highs and lower lows with two converging trend lines.
XRP/USD 4-hour chart
On April 26, XRP price had a breakout of this pattern but didn’t yet meet the price target of $1.62. As long as XRP bulls hold the previous trend line resistance which is located at $1.11, the price target of $1.62 remains valid.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.