XRP Holders Are Beginning to Lose Hope on the Altcoin

21 mar

XRP traders have accrued about $31 million in losses over the last week in trading.
Traders are shedding their XRP holdings and on-chain activity has dropped since the altcoin bridged its year-to-date high on the 11th March, 2024.

Technical Analysis
XRP price is at risk of further decline as holders anticipate developments in the SEC vs. Ripple lawsuit. XRP price broadly consolidated above $0.60 on Thursday currently trading at $0.6233 up by 2% as The Securities and Exchange Commission (SEC) is set to file its remedies-related opening brief on Friday. According to Ripple and SEC’s agreement, the proceedings will remain sealed from public view and this has increased XRP holders’ anticipation of the developments in the legal battle.

XRP quickly dropped below the key support level at $0.60 on Thursday morning and surged to $0.6234. The altcoin has repeatedly tested the $0.60 support and rebounded from it, signaling its importance for the altcoin.

If the bears gain momentum, XRP could potentially drop to $0.5464. Moreover, the altcoin could collect liquidity at this level, it could see a rebound and target a new resistance level of $0.6886.

Meanwhile, the Relative Strength Index (RSI) has shown a moderate growth rate for the asset at 51 indicating a neutral Pendulum bulb here. No overbought neither is there oversold scenario.

On-Chain Metrics
On-chain metrics pose a loss of interest in XRP while the altcoin faces a price correction.
XRP has considerably decrease in on-chain activity, as measured by the Active Addresses and Whale Transaction Count of those transfers valued at $100,000 and higher.

according to Santiment’s on-chain data, XRP reached its year-to-date peak on March 11 and since then these two metrics have been declining steadily. This occurs at the same time as XRP’s price has corrected. Ripple lost nearly 20% since March 11 together with the drop in activity.