Ripple’s native coin, XRP, is facing significant selling pressure at the moment. The price of the XRP is at risk of a significant pullback as its selling pressure continues to rise. The number of active addresses for XRP is also at a decline, and the interest in the crypto token seems to have faded away.
This doesn’t come as a surprise, especially after the constant pressures the lawsuit from the United States Securities and Exchange Commission has caused. The crypto investors appear uninterested in XRP, especially after Ripple’s lack of assurance that the lawsuit will end soon.
Moreover, the initial and significant spike in the number of active addresses and investors from the January 31 boom caused by the r/WallStreetBets has progressively declined. The metrics show that the XRP sees a current low of 12,000 active addresses per day.
Similarly, the social volume of Ripple XRP has also seen a decline in the past month and a half, despite the recent bull run that pulled the entire cryptocurrency market.
Caption: XRP faces significant selling pressure as its network activity slows
On the 4-hour chart, XRP faces a strong resistance level at $0.456, the 100-SMA, and $0.46, the 50-SMA. On the flip side, the next bearish price targets are $0.421 and a low $0.393. However, if the XRP manages to reclaim the 50-SMA and 100-SMA, its price is expected to recover swiftly and rise to $0.495. Breaking out from this point could drive the price up to $0.60.
Despite the significant selling pressure for the XRP, it had notably performed well last week. The crypto stayed on the green and started a slow recovery, and challenged different resistance levels as the whole crypto market going through a slump.
Regardless, numerous members of the crypto community closely monitor Ripple and the SEC’s legal battle, as this would bring clarity throughout the crypto industry and possibly the recovery of the XRP.
