XRP, $1.1 Support Line Collapses...Even Whales 'Dumping'

▲ XRP/AI-generated image

The decline in Ripple's price has deepened further, driven by a combination of slowing demand and a slump in on-chain activity. As major support lines collapsed amidst a contraction in overall market buying sentiment, investor caution about further declines is escalating.

According to crypto media outlet FXStreet on July 8 (local time), XRP price failed to hold the $1.10 mark and broke downwards amidst the overall market correction in the virtual asset market. This decline coincides with a period where on-chain indicators, which reflect network activity, are all showing a downward trend. Indicator analysis revealed that the number of new addresses created and active addresses has fallen to its lowest level in recent months, indicating a significant wane in market interest in the asset.

Signs of departure from key buying entities that previously supported Ripple's price have also been detected. On-chain data revealed that the transaction volume and holdings of large whale investors have continuously decreased over the past week. This capital outflow and demand vacuum are major factors intensifying selling pressure within exchanges. Currently, technical analysis also visually confirms the dominance of short-term downward pressure, with moving averages forming a death cross.

Currently, Ripple's price is trading below key Fibonacci retracement lines and is exploring new support zones. Analysts have diagnosed that if no short-term rebound momentum appears, the $1.05 line could also be jeopardized, and in the worst-case scenario, it could retreat to the psychological threshold of $1.00. On the other hand, some technical indicators, such as the Moving Average Convergence Divergence (MACD), are detecting oversold signals, meaning the possibility of bargain hunting for a short-term technical rebound cannot be ruled out.

Regulatory uncertainties and changes in the global macroeconomic environment are also considered variables for Ripple's future trajectory. Despite the legal battle with U.S. regulators nearing its end, the absence of clear guidelines has led to increased caution among institutional investors. In the current situation of rapidly decreasing trading volume, if no strong positive catalyst emerges to reverse the market, a sluggish downward consolidation is expected to continue for some time.

[Article Key Summary]

-Ripple's price has deepened its decline, giving up the $1.10 support line due to a combination of on-chain bearish factors such as slowing demand and a sharp decrease in active network addresses.

-Signs of large whale departures combined with a technical death cross have increased selling pressure, and there is a risk of further retreat to the $1.05 line in the short term.

-Amid ongoing institutional caution due to regulatory uncertainty, the inflow of bargain-hunting based on oversold indicators is expected to be a turning point for a future rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*