Ripple Price Forecast: Declining network growth and underwater XRP holders suggest more downside for XRP price
|- XRP price trades at $0.511 after dropping 6% in the last month.
- The disinclination towards buying can be noticed in declining network growth spurts.
- Holders selling their tokens at a loss, suggesting that investors are not bullish on the long-term.
- A continuation of the downtrend could see Ripple drop 19% to $0.407.
Ripple (XRP) price shows a lack of buying pressure after its win against the US Securities and Exchange Commission (SEC) on July 13. Since then, the remittance token has been on a downtrend. Considering Ripple’s current position, a further decline would not be surprising.
Read more: Ripple CEO calls out SEC and Chair Gary Gensler, saying, “Everything the SEC cares about, they lost”
Ripple holders flee
XRP price has shed a whopping 47% since July 13, when Ripple scored a partial victory against the SEC. Currently, the remittance token trades at $0.507, with on-chain metrics suggesting an increasing bearish outlook.
The 30-day average of 24-hour active addresses currently sits at 15,500, which is down 89% from 144,700 as seen on August 13. This sharp decline indicates a diminishing interest from XRP investors, which in turn denotes a flight of capital.
XRP 24-hour active addresses
Furthermore, the Network Growth is also showing a steady decline with lower highs. This index further adds credence to the declining investors' interest, as seen above.
XRP network growth
The Realized Network Profit/Loss indicator puts the final bearish nail in the coffin, which shows negative spikes after August 1, suggesting that investors are selling their holdings and realizing losses.
XRP network realzied profit/loss
XRP price ready to slide lower
With multiple bearish on-chain metrics, investors can only expect Ripple (XRP) price to slide lower. Currently, the remittance token trades at $0.507 after flipping the $0.541 resistance level into a support floor.
A failure from the buyers’ end to step up could trigger a 19% decline to the next key support level at $0.407.
XRP/USDT 1-day chart
Invalidation of the bearish thesis will occur if XRP price flips the $0.541 resistance level into a support floor. In such a case, XRP price could attempt a 23% rally to tag the next key level at $0.665.
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