The recent downturn in the cryptocurrency market has seen XRP's price slide to its lowest level in four months, reaching $1.14. This decline has contributed to a broader slowdown in the crypto market, with both technical analysis and on-chain indicators pointing to a more bearish outlook for the altcoin. According to market expert Sam Daodu, the current trend structure is a significant concern, with XRP trading below its key moving averages, including the 7, 14, and 30-day averages.
The weekly exponential moving averages (EMAs) are clustered between $1.50 and $1.78, effectively capping every rebound attempt and indicating that even when XRP bounces, buyers struggle to push it out of that upper resistance band. Daodu notes that the 200-day moving average, currently at around $1.64, serves as a dividing line between bullish and bearish regimes, and the asset would need to recover significantly to regain a more constructive trend. This level is seen as a "long climb back" from current trading levels, highlighting the challenge XRP faces in regaining momentum.
On-Chain Activity Raises Concerns
On-chain data adds another layer of concern for the XRP price, with whale withdrawals from Binance falling sharply over the past 30 days. According to CryptoQuant data, large-holder accumulation has stalled, implying that big holders are not adding to their positions with conviction during this decline. Daodu's bearish setup centers on three key price levels: $1.14, $1.11, and $1, which could become the next stops if selling pressure persists. The path forward may hinge on three factors: whether the XRP price can defend $1.14, the outcome of the CLARITY Act floor vote, and whale behavior, specifically whether whale withdrawals from Binance start climbing back above the current 978 million XRP reading.
While the drop in XRP's price is not necessarily rooted in XRP-specific fundamentals, the bearish indicators suggest that the next phase will depend on how broader market conditions develop. Daodu cautions that the current bearish trend may be driven by macro conditions rather than XRP-specific factors, highlighting the need for a more nuanced understanding of the market. As the cryptocurrency market continues to evolve, it remains to be seen whether XRP can regain its momentum and break out of its current bearish trend.
