XRP price falls after an unsuccessful attempt to turn the last price strength into a sustainable breakout. The altcoin seemed ready for an upward move as the price focused on a descending structure.
This scenario collapsed as selling pressure returned. However, investor behavior shows that XRP has a chance to reverse the trend.
New XRP holders raise concerns
XRP shows preliminary signals of a possible trend change due to bullish divergence on the Chaikin Money Flow indicator. Over the last 10 days, the CMF has established a higher low, while the XRP price continues to make lower lows. This divergence suggests an increase in accumulation despite falling prices, indicating growing interest in purchases.
A rising CMF usually indicates a strengthening inflow of capital even during a correction. For XRP, such a setup suggests that sellers are losing their advantage as demand slowly increases. Although the price still looks weak, prolonged accumulation often precedes a trend reversal, giving XRP a chance to bounce back if the broader market stabilizes.
Macro momentum indicators show a decline in network growth. Historically, the creation of new addresses has driven price increases for XRP. A larger number of participants usually indicates a new inflow of capital into the ecosystem, supporting rallies in previous phases of recovery.
Currently, the number of new XRP addresses has dropped to its lowest level in 13 months: 3090. Such a sudden drop shows a lack of confidence among potential investors. Weak acquisition of new users limits liquidity and eliminates growth catalysts. Without a new impulse in the network, attempts to bounce back remain fragile and vulnerable to a return of selling pressure.
XRP is trading around $1.95 at the time of writing after a failed breakout from a descending wedge. This structure was forecasting a bullish continuation. However, this scenario collapsed due to the weakness of the market, which negated the expected upward move and reinforced the bearish technical advantage.
Additionally, the bounce from the lower wick on Monday suggested that investors absorbed the selling pressure. This confidence quickly disappeared as the price began to fall again. XRP is now priced below $2.00 and is holding just above $1.93. Losing this level could open the way for a drop to $1.86.
On the other hand, reversing the negative scenario requires a decisive bounce. XRP must regain $2.00 and close above that level to restore confidence.
A confirmed breakout would support a march towards $2.25, in line with the wedge projection. For now, just breaking above $2.00 would negate the current negative scenario and reduce the risk of further declines.
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