XRP Volatility and Investor Sentiment

XRP has faced significant volatility in recent weeks, with price action lacking clear momentum. The altcoin struggled to maintain upward momentum as broader market conditions remained bearish.

Despite attempts to recover, weak investor sentiment has prevented any substantial movement, resulting in a lack of strong support, with many investors hesitating to make decisions.

XRP Is Losing Investor’s Interest

XRP’s market sentiment reflects ongoing uncertainty, as active addresses show a significant drop in participation. Over recent days, investor conviction has waned due to bearish market cues, with active addresses falling from 530,000 to just 123,000, indicating declining interest in the altcoin.

The decline in participation highlights investors’ reluctance to engage with XRP. As more investors pull back, liquidity becomes limited, dampening potential for a price rebound.

The macro momentum of XRP has also been affected by broader market conditions, though long-term holders (LTHs) remain crucial in supporting the price. The MVRV Long/Short Difference shows LTHs sitting on considerable profits, holding their positions rather than selling at low prices. This support creates a buffer against further price declines.

XRP Price Aims at Recovery

Currently, XRP’s price stands at $2.17, above the support level of $2.14. Despite a 22% crash recently, it maintains above the critical $2.00 mark. Although promising, breaching the $2.33 barrier may be difficult due to a lack of strong bullish signals.

Given current market conditions and investor sentiment, XRP may continue consolidating between $2.33 and $2.14. A breakout either way will depend on broader market momentum. Until then, XRP might remain trapped in this narrow range.

If XRP falls below the support level of $2.14, it could slide to $1.94, invalidating the neutral outlook and pushing the altcoin into a more bearish trend. Such a decline would indicate a further loss of confidence, complicating recovery efforts.