XRP has been experiencing extreme volatility and struggling to find stability. After experiencing sharp price fluctuations, XRP is having difficulty recovering its momentum.
This lack of consistency is also evident in investor behavior. Market uncertainty is causing hesitation. Altcoins have not established a clear trend, causing many traders to wait and observe.
XRP Dependent on Bitcoin
The rate of new XRP address additions has significantly decreased since March. This indicates that the coin is losing its appeal to new investors. While over 4,000 new addresses are being added daily, XRP's growth is slowing down. This trend reflects the broader market uncertainty and shows that investors are hesitant to engage with assets lacking a clear direction.
The recovery has not been as strong as expected, and the overall sentiment towards XRP appears lukewarm. The lack of interest from new investors may be due to the long-term downward trend over the past month.
XRP currently shares a strong correlation of 0.86 with Bitcoin, which could work favorably for altcoins. If Bitcoin continues to rise to the $110,000 price range, XRP could gain positive momentum.
If Bitcoin maintains its upward trend, XRP might also see a similar revival, as altcoins typically reflect BTC's price movements. This strong correlation could provide some relief to XRP holders.
XRP Price Recovery Exploration
At the time of writing, XRP is trading at $2.16, above the support level of $2.13. This support level has helped prevent further decline, and a possible scenario for XRP is a correction above this level. The next resistance point is at $2.23, which, if not breached, could limit short-term gains.
If Bitcoin continues to maintain its upward momentum, XRP could break through the $2.23 resistance. This could open the way for additional gains. The altcoin could challenge the $2.27 barrier, which has acted as a strong resistance point. Continued ascent could lead XRP to higher price ranges depending on market conditions.
However, if market conditions do not trigger significant gains, XRP could fall below the $2.13 support level. In this case, the altcoin might slip to $2.08, reflecting the decline seen earlier this month. A drop below this level would indicate further XRP weakness and could trigger additional selling among investors.
