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XRP price slides to $2.75 amid weak sentiment, falling onchain activity, and key $2.70 support test. XRP price slides to $2.75 amid weak sentiment, falling onchain activity, and key $2.70 support test.

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XRP extends losses as risk-off sentiment pressures crypto market – Crypto News

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  • XRP falls 1.94% to $2.75 as risk-off sentiment hits crypto markets.
  • Active addresses drop from 50K in July to 19K, showing weak demand.
  • $2.70 support is key; losing it could send XRP down toward $2.08.

XRP extended its recent downturn on Monday, with the token slipping 1.94% over the past 24 hours to trade at $2.75.

The decline builds on last week’s sharp sell-off and comes amid broader weakness across the cryptocurrency market.

Analysts suggest that falling onchain activity and reduced investor appetite are weighing on the altcoin, though a potential rebound remains possible if key support levels hold.

Investor sentiment and onchain activity weaken

The latest pullback in XRP comes against a backdrop of declining risk appetite in the digital asset market.

The Crypto Fear & Greed Index has fallen into the “fear” zone at 46, down from “neutral” last week and “greed” a month ago, according to data from Alternative.me.

This shift highlights growing investor caution after months of strong price action.

On-chain metrics reinforce the risk-off mood.

Active addresses on the XRP Ledger have dropped sharply, falling to around 19,250 on Monday compared with roughly 50,000 in mid-July.

Active addresses track the number of wallets sending or receiving XRP, and the steep decline indicates waning participation and lower transaction activity.

Futures market data paints a similar picture.

Open interest in XRP derivatives has contracted to $7.7 billion from $10.94 billion in recent weeks, underscoring a lack of conviction among traders.

Reduced open interest often signals weaker speculative demand, potentially amplifying downside risk in the short term.

Technical picture hinges on $2.70 support

From a technical perspective, the XRP price is testing critical support at $2.70.

The token has been consolidating within a descending triangle pattern since rallying to a multi-year peak of $3.66 in July.

This bearish formation is marked by a flat support line and descending resistance trendline.

If bulls can defend the $2.70 threshold, XRP could attempt a recovery toward the upper boundary of the triangle at $3.09.

That level coincides with both the 50-day simple moving average (SMA) and the 0.618 Fibonacci retracement line.

A successful breakout would strengthen bullish momentum and potentially propel the token toward the $3.70 region, near the apex of the current chart pattern.

However, a failure to hold above $2.70 could trigger fresh selling.

The next area of support lies between $2.60, aligned with the 100-day SMA, and $2.48, corresponding to the 200-day SMA.

A breakdown of this demand zone could expose XRP to losses toward $2.08, representing a 25% decline from current levels.

Market signals highlight uncertain outlook

Order flow dynamics suggest some resilience at the $2.70 level, with liquidation heatmaps showing buyers clustering around this price.

At the same time, significant sell orders are concentrated in the $2.87 to $3.74 range, highlighting the resistance that bulls would need to overcome for a sustained rally.

Technical indicators point to lingering downside risk.

According to Cointelegraph, XRP’s Moving Average Convergence Divergence (MACD) is flashing signals of a potential bearish crossover in September, which could push the token toward $2.17 if confirmed.

For now, XRP’s near-term trajectory appears tied to whether bulls can maintain support at $2.70. While broader market sentiment remains cautious, any rebound from this level could set the stage for renewed upside attempts.

Conversely, a breakdown would likely extend the current downtrend and deepen losses.

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