XRP's price has declined nearly 4% in the past 24 hours and 21% over the last 30 days, reducing its market capitalization to $144 billion. The downturn coincides with alarming technical signals, including a plummeting Chaikin Money Flow (CMF) and a 53% drop in active addresses. With key indicators like the death cross formation emerging, traders are closely monitoring whether XRP stabilizes or enters a deeper correction.
Key Technical Indicators Signal Bearish Momentum
Chaikin Money Flow (CMF) Hits Historic Low
XRP’s CMF has fallen to -0.27, marking its lowest level since June 2022. This indicator evaluates buying/selling pressure by assessing price and volume dynamics:
- Positive values: Accumulation (bullish).
- Negative values: Distribution (bearish).
A sustained negative CMF suggests escalating capital outflows, weakening bullish momentum. Historically, prolonged negative CMF precedes extended downtrends.
Active Addresses Drop 53% in 30 Days
XRP’s 7-day active addresses nosedived to 190,470—a 53% decline from January 2024. This metric reflects network engagement:
- Peak (Jan 2024): 407,000 addresses.
- Current: Lowest since November 2024.
Fewer active addresses often correlate with reduced liquidity and weaker price action, signaling dwindling investor interest.
Price Analysis: Potential Scenarios
Bearish Outlook: Death Cross Formation
XRP’s EMA lines show a death cross (short-term averages crossing below long-term ones), typically signaling intensified downward momentum. Key levels:
- Support: $2.33 (critical hold).
- Breakdown target: $1.77 (29% correction).
Bullish Reversal Case
If XRP regains momentum:
- Resistance: $2.83 → Breakout could target $3.15–$3.28.
FAQs
Q: What does CMF’s negative value mean for XRP?
A: It indicates dominant selling pressure, raising risks of further price declines unless capital inflows rebound.
Q: Why are active addresses important?
A: They measure network activity; fewer addresses suggest lower trading demand, often preceding price stagnation.
Q: Can XRP recover from its current slump?
A: Yes, if CMF stabilizes and active addresses rebound, but current signals favor caution.
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Conclusion
XRP’s technical and on-chain metrics highlight significant bearish pressure. Traders should watch for CMF reversals and address activity shifts to gauge potential recovery. Strategic support/resistance levels will dictate short-term price action.
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