XRP (XRP) Price: Can Bulls Defend $2.48 Support Level After Wednesday’s Peak?

TLDR

• XRP price peaked at $2.65 on Wednesday before sliding to $2.51 as market uptrend slowed
• Long liquidations reached $8.44 million in 24 hours while network growth declined to 3,400 addresses
• XRP remains above key moving averages despite pullback
• Technical indicators show mixed signals with MACD still bullish but RSI at 63.34 and weakening
• Price might find support at $2.48 level if the correction continues

XRP has experienced a slight pullback on Thursday, sliding to $2.51 after reaching a peak of $2.65 on Wednesday. The cryptocurrency had been on a two-week uptrend from support around $2.12, mirroring the positive sentiment across the broader crypto market. However, recent data suggests the rally may be losing momentum.

The price movement comes as global markets show recovery signs. Progressive talks between the United States and China have resulted in a 90-day trade truce, while the US and UK recently reached a bilateral trade agreement easing trade between the two nations.

Network Growth Concerns

A key concern for XRP is the shrinking network activity. Sentiment’s Network Activity metric shows a consistent decline from nearly 16,000 addresses in January to approximately 3,400 addresses as of May 7. This 78.7% drop in network growth indicates fewer new addresses and reduced user engagement on the XRP Ledger, potentially signaling weaker demand for the cryptocurrency.

Since its January peak of $3.40, XRP tumbled to $1.61 before reversing the trend in April. The current price of $2.53 represents a partial recovery, but the declining network metrics could pose challenges to sustained growth.

The derivatives market for XRP is showing stress signals. CoinGlass data highlights $10.14 million in liquidations over the past 24 hours, with long positions accounting for $8.44 million compared to just $1.69 million in shorts.

Trading volume has also decreased to $8.69 million from approximately $19.5 million on Monday, suggesting tightening liquidity in the market. The open interest has seen a slight decline of 1% to $5.41 billion, indicating some unwinding of leveraged positions.

Technical Analysis Points to Mixed Outlook

Despite these concerns, XRP’s price remains above key moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). This positioning suggests a relatively strong technical foundation despite the recent pullback.

XRP Price on CoinGecko

The Moving Average Convergence Divergence (MACD) indicator maintains a buy signal above the center line, with green histograms suggesting sustained bullish momentum. This indicates that interest in XRP remains elevated, with potential for the uptrend to resume toward the $3.00 mark.

However, the Relative Strength Index (RSI) stands at 63.34 and is moving toward the midline of 50, highlighting some weakness in the current trend. This technical indicator suggests bulls may be losing steam in the short term.

If the current correction extends, traders should watch for support levels around the $2.48 zone. Below that, the 50-day EMA at $2.27, the 100-day EMA at $2.25, and the 200-day EMA at $2.00 could provide additional support.

On the upside, XRP faces resistance near $2.55, with further barriers at $2.58 and $2.60. A clear move above $2.60 could push the price toward the recent high of $2.65, with further targets at $2.72 and $2.75.

The hourly chart shows a break below a key bullish trend line with support at $2.55, suggesting short-term weakness. However, as long as the price stays above the $2.48 support level, another upward move remains possible.

XRP’s immediate price action will likely depend on its ability to hold key support levels while managing the challenges of declining network activity and derivatives market pressures.