Can XRP price drop to a two and a half month low?

XRP's price has struggled to regain the momentum it enjoyed recently, the altcoin's decline since early October. Initially trading well above $0.60, the altcoin has now dropped to $0.51, causing concern among investors.

This drop indicates that bearish sentiment may persist, making market participants cautious about XRP's recent outlook.

Ripple investors panic

The recent decline in XRP price is likely due to long-term holders (LTHs) reacting with certainty that the asset has lost ground. The increase in “age consumption” indicates that these LTHs have started moving their holdings following the fall in prices. This shows the level of panic among experienced investors, suggesting that they are concerned about risk.

This panic-driven movement among LTHs highlights the weak sentiment in the XRP investor community. The XRP market appears to be in a delicate spot, with seasoned traders showing signs of hesitation. A lack of confidence among LTHs could create additional selling pressure, which could exacerbate the downtrend if sentiment remains unstable.

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In terms of macro-momentum, XRP's network growth suggests that when the price starts to decline at the beginning, new investors are interested in entering the market at a lower level. However, as XRP's price correction intensified, this initial optimism faded. Network growth has slowed, reflecting a decrease in new addresses joining the XRP network.

The decline in network growth indicates that XRP may lose traction. New addresses were initially added in response to lower prices, while the decline in XRP's value dampened enthusiasm among buyers.

XRP price prediction: clearing the way

XRP fell by 5.6% on Friday and is working to return to $0.52 as a support level. This level corresponds to the 38.2% Fibonacci Retracement line, which makes it a critical signal for any potential upward movement. Finding this support could pave the way for a rise to the $0.55 resistance, giving XRP a chance to stabilize.

Currently, XRP is holding above the 23.6% Fibonacci line at $0.47, often seen as a bear market support floor. This level provides a basis for preventing further declines, which will help XRP avoid more significant losses if the market conditions stabilize.

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However, the lack of strong, bullish signals is challenging for XRP's recovery. If XRP is able to flip $0.52 to support, it could go back to $0.55, contradicting a bear-neutral view.