Lorenzo Stroe
Independent Analyst
- XRP price is at risk of a significant pullback as selling pressure keeps mounting.
- The number of active addresses has notably declined in the past month.
- Interest in the digital asset seems to have faded away.
XRP remains under a lot of pressure due to the SEC lawsuit and it seems that investors are not very interested in the digital asset anymore. Ripple hasn’t said much about the lawsuit which could extend to the end of 2021.
XRP price at risk of plummeting as interest fades away
Besides a significant spike in the number of active addresses on January 31, when a Reddit group decided to pump XRP, this metric has been slowly declined to a current low of 12,000 active addresses per day.
%20[13.57.42,%2011%20Mar,%202021]-637510663794323605.png)
XRP Active Addresses chart
Similarly, the social volume of XRP has also significantly dropped in the past month and a half, despite the bullishness of the entire cryptocurrency market.
%20[14.33.05,%2011%20Mar,%202021]-637510663900894436.png)
XRP Social Volume
On the 4-hour chart, XRP faces a strong resistance level at $0.456 which is the 100-SMA and the 50-SMA at $0.46. The next bearish price target is $0.421 followed by a low of $0.393.
XRP/USD 4-hour chart
On the other hand, reclaiming the 50-SMA and the 100-SMA, XRP price should quickly rise towards the critical resistance level at $0.495. A breakout above this point would drive XRP to $0.6.
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