Ripple’s (XRP) price is showing signs of a potential retracement despite recent bullish momentum. The analysis focuses on weakening market signals that suggest the altcoin may struggle to maintain its upward trajectory in the short term.
Santiment data reveal that XRP’s price Daily Active Addresses (DAA) divergence dropped to -74.46%, indicating declining user engagement. As per technical analysis, this serves as a sell signal since lower DAA during price increases signifies weak uptrend strength.
The Money Flow Index (MFI) has also decreased, from 81.54 to 65.54, suggesting increased selling pressure and reinforcing the bearish DAA signal. A lower MFI shows money outflow from XRP, which reflects waning buying pressure.
BeInCrypto's daily chart analysis highlights the $0.60 region as a major supply zone for XRP, which has faced resistance multiple times. Currently, XRP aims to reach this level, yet it may face rejection again despite strong support around $0.50.
Historical data indicates that past rejections around $0.60 resulted in a price drop to $0.52. Fibonacci retracement suggests that XRP could fall to $0.55 in the short term. However, breaking the $0.60 resistance could invalidate this forecast, pushing the price up to $0.66.
