As XRP observes a downwards breakout from the consolidation channel, the bears dominate the asset’s price action, according to the Ripple price analysis. Despite the 15% drop, bearish pressure has not abated, and the price action continues to trend downwards.
As Ripple is continuing to head lower with no signs of recovery. It is being predicted XRP can fall as low as $1.60 level in days to come.
Reasons XRP could stoop
Between August 13 and August 15, the price of XRP soared from $0.95 to $1.35. As a result of this run-up, sceptics and hesitant investors came out of the woodwork, and Ripple fell 18 percent to $1 in the weeks that followed.
The greedy buyers pushed XRP price to set up a swing high at $1.41, well above the August 15 swing high at $1.35. During the August 15 and September 6 peaks, the relative strength index (RSI) formed a lower low, resulting in a bearish divergence.
Collapse of support level
The recent breakdown of a stable support floor is the second and equally important cause. As markets fell today, the price of XRP sliced through the demand zone, ranging from $0.96 to $1.01.
This section of the barrier is critical because it has been in use since early April. Breaking below this level will turn it into a tough resistance level, preventing any short-term buying pressure from reclaiming it.
Furthermore, there is still a large gap between the current RSI level and the oversold zone, indicating that the remittance coin has not yet bottomed.
On chain metrics
By the end of the first week of September, the number of daily active addresses had risen to around 31,316. The number of investors interacting with the Ripple blockchain is decreasing as XRP declines.
This metric reached a lower high of 28,761 on September 17, representing an 8.15 percent decline in 11 days.
This decrease indicates that the market participants are uninterested in the prospects of XRP price right now and are likely converting/selling their holdings, leading to a downtrend.