XRP Faces Mounting Bearish Pressure
XRP finds itself at a critical juncture, exhibiting significant weakness across multiple fronts that point to a potential deeper decline. A combination of bearish technical patterns, sustained sell-side pressure, and a noticeable drop in investor confidence is signaling an increased likelihood of the cryptocurrency retesting the crucial $2.72 support level in the near term.
Technical Breakdown Signals Downward Momentum
The charts for XRP are painting a clear picture of bearish dominance, characterized by a descending triangle pattern where lower highs are consistently pressing against a steadfast $2.72 support. This technical setup is further reinforced by a "Taker Sell Dominant" Spot Taker CVD, indicating aggressive and continuous net selling in the spot market. Short-term price bounces have consistently failed to reverse this selling momentum, underscoring the firm control sellers currently exert. Should this intensity persist, a retest of the triangle's lower boundary at $2.72 appears increasingly probable.
Fading Confidence in On-Chain and Derivatives Markets
Beyond technical indicators, a significant cooldown in network participation and derivatives activity is adding to XRP's woes. On-chain data reveals a notable decline in transaction count and network growth, suggesting waning investor enthusiasm and reduced engagement with the XRP Ledger. Concurrently, Open Interest (OI) has decreased by 6.51%, signaling that both long and short positions are being closed as volatility subsides. This contraction often precedes a continuation of the prevailing trend, and when coupled with dominant sell-side pressure, it reinforces the bearish narrative, suggesting that a lack of renewed confidence could push XRP further towards the $2.72 threshold.
