- The number of active addresses in the XRP blockchain has significantly decreased in the past two weeks.
- The digital asset faces a strong resistance level ahead.
- If XRP bulls can hold a significant support point, Ripple could see massive upswing.
XRP had a colossal 44% upswing in the last three days after a significant correction down to $1. Unfortunately, it seems that investors aren’t as interested in XRP anymore, despite SEC fears fading away.
On the daily chart, XRP price got rejected from the 61.8% Fibonacci retracement level at $1.37. This could drive the digital asset down to the 50% Fibonacci level at $1.19.
XRP/USD daily chart
To further add credence to this outlook, we can check that the number of active addresses for XRP has been in a significant downtrend since April 14. This indicates that investors are less and less interested in purchasing or trading with XRP.
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XRP Active Addresses chart
However, on the 4-hour chart, XRP formed a descending wedge pattern which can be drawn by connecting the lower highs and lower lows with two converging trend lines.
XRP/USD 4-hour chart
On April 26, XRP price had a breakout of this pattern but didn’t yet meet the price target of $1.62. As long as XRP bulls hold the previous trend line resistance which is located at $1.11, the price target of $1.62 remains valid.
