XRP has shown weakness over the past 48 hours. The overall market situation has a significant impact on this instability. This token continues its downward trend, reflecting the risk-averse sentiment across digital assets.
Despite this decline, XRP is not showing a sharp selling pressure. The current focus of the market is shifting towards price stability. Some groups of holders are absorbing the selling pressure, supporting the possibility of a rebound.
XRP, entering the opportunity zone
Market sentiment indicators suggest that XRP may be approaching a turning point. The realized market cap (MVRV) ratio has fallen into an opportunity zone.
When below -14%, it generally indicates a signal of selling saturation. In the past, similar indicators have appeared, prompting investors to seek undervalued entry opportunities and initiating accumulation phases.
In such an environment, it is easy for buying pressure to accept additional volume. If the MVRV remains low, there tends to be a slowdown in the downward trend. Investors also seem to be inclined to enter at discounted prices.
Similar movements are expected in the coming days. This trend may help XRP establish a short-term bottom.
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The movements of long-term holders are also increasing the potential for price stabilization. The liveliness of XRP has decreased for several weeks in a row. It is currently approaching its lowest level in four months. Liveliness tracks the movement of long-held coins, reflecting the holders' confidence.
When liveliness decreases, it means accumulation occurs rather than distribution. In the case of XRP, long-term holders are opting for additional purchases instead of selling. This reduces the circulating supply and mitigates volatility. When such accumulation continues, it helps stabilize prices even in prolonged downturns.
XRP price has dropped 10.9% in the last 48 hours. At the time of writing, it is trading around $1.69. The current token is just below the support line of $1.70. Selling pressure due to the overall downward trend is affecting the price.
The downward trend line has been acting as a resistance since early this year. For XRP to rebound, investor participation needs to increase. Recovering $1.81 as a support level is a crucial step.
If such movements occur along with indicators of improved market sentiment, XRP could reach $2.00.
If selling pressure continues, the risk of decline remains. If the downward trend continues, XRP could fall below the support range of $1.61. In that case, there is a possibility that the price could drop further to $1.54. Such movements negate the bullish scenario and may continue to show weakness until new demand appears.
