XRP Price Analysis: Why $3 Remains Out of Reach
The XRP price continues to face challenges in reaching the $3 mark, with recent on-chain data highlighting several key obstacles. This analysis explores the factors contributing to XRP‘s current price stagnation and what traders can expect in the near term.
Declining Network Activity on XRP Ledger
According to Glassnode, the XRP Ledger has seen a notable decline in both new and active daily addresses. This trend indicates waning demand, which could prolong the current price consolidation.
- New daily addresses have fallen significantly from January’s peak
- Active address counts show a similar downward trajectory
Reduced Open Interest Signals Caution
Data from CoinGlass reveals a 30% drop in XRP open interest over the past month. This decline suggests traders are becoming more risk-averse and closing positions.
Technical Outlook Remains Bearish
XRP currently trades below critical resistance levels. Market analysts caution that failure to hold current support could lead to a test of $1.20.
Market Sentiment and Expert Perspective
“The current technical and on-chain metrics paint a cautious picture for XRP,” noted a senior market analyst. “While the asset has shown resilience in the past, breaking through the $3 barrier would require a significant shift in market dynamics.”
