XRP is currently trading at $0.61, with a brief breach of the $0.60 mark recorded on Monday. However, throughout April, the cryptocurrency has shown sideways movement as on-chain metrics indicate diminishing interest among traders.
Declining On-Chain Activity
In the first week of April, XRP’s active addresses plummeted by 36%, while transaction volume experienced a significant 70% decline, according to data from crypto intelligence tracker Santiment. These metrics suggest a dwindling interest in XRP among market participants, potentially signaling an upcoming correction in the altcoin’s price.
XRP Active Addresses and Transaction Volume
XRP’s price embarked on an upward trajectory after reaching a low of $0.5623 on April 4. It managed to surpass the crucial $0.60 level and reached $0.61 on Tuesday. The Awesome Oscillator indicates bullish momentum with green bars above the neutral line, while the Relative Strength Index (RSI) climbed to 62.83, reflecting increased bullish sentiment.
On April 4, Ripple’s announcement about launching a USD-backed stablecoin ignited excitement among XRP holders and crypto influencers.
Related article: Projected $2.8 Trillion XRP Stablecoin Market Triggers Analysts Price Forecast
Cryptocurrency experts anticipate that this move could enhance the utility of XRP, the native token of XRPLedger. Notably, @XRPcryptowolf, a respected figure in the crypto sphere, views the stablecoin launch as a bullish development for XRP, likely contributing to its recent gains.
Price Targets and Resistance
In the current uptrend, XRP’s immediate target lies at Monday’s high of $0.6265, with further resistance anticipated at $0.65 and the year-to-date peak of $0.7440. Notably, XRP has struggled to convert the latter resistance level into support since mid-March 2024.
XRP/USDT 4-hour chart
A candlestick close below the $0.60 level could invalidate the bullish outlook, potentially leading to a decline to $0.5944, representing the 50% Fibonacci retracement level from Monday’s high. If a further correction occurs, XRP may find support at the April 4 low of $0.5623.
Related article: XRP Market Turmoil: Whales Sell $180M Worth of Tokens Post-SEC Announcement
As XRP trades in a range-bound manner below $0.62, its price action remains influenced by declining on-chain activity. While technical indicators suggest bullish momentum, caution is warranted, especially if key support levels are breached.
Traders are advised to monitor developments closely to gauge XRP’s future trajectory.
