XRP Price Forecast: Big Investors and Inactive Wallets Impact XRP Outlook to $6.90
XRP is currently at a crucial point, facing a challenging road between declining on-chain activity and a lofty price target of $6.90 that continues to inspire hope among long-term investors. Despite short-term bearish pressure suggested by technical data, some experts remain optimistic, seeing XRP following a well-structured path towards new peaks.
Recent data from the XRP Ledger (XRPL) indicates a weakening momentum, with the number of active addresses dropping by 44% from its peak of over 50,000 to around 28,000. This decline in on-chain engagement reflects a decrease in speculative demand, signaling a potential weakening in market conviction. Consequently, the XRP price may encounter increasing resistance as traders appear to be adopting a more risk-averse approach.
In the derivatives market, Open Interest (OI) in XRP futures has declined from $10.94 billion to around $9 billion, as traders adjust their positions, possibly due to profit-taking or a shift towards a more cautious outlook. Funding rates in XRP derivatives have also decreased, with fewer traders opening long positions, indicating a lack of confidence and a preference for short positions. However, some analysts view this bearish sentiment as a potential buying opportunity, especially for those seeking an entry point as volatility stabilizes.
On a technical level, XRP is currently testing a key support level around $3.00, but indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) point to decelerating momentum. The RSI is decreasing from overbought levels, suggesting weakening buying power, while the MACD line has crossed below its signal line on the daily chart, typically a bearish signal. If XRP falls below the $3.00 support, further declines towards the 50-day EMA at $2.66 or the 100-day EMA at $2.48 could follow.
Despite short-term setbacks, traders like DonAlt remain optimistic about XRP’s future, with a bold prediction of the asset reaching $6.90, representing a 135% rally from current levels. DonAlt’s consistent vision and adherence to his initial targets, set when XRP was valued at $0.70, offer a compelling perspective amidst a sometimes reactive crypto landscape. Should XRP achieve this target, it would mark an impressive 880% climb from its starting point, highlighting the potential for significant growth if the forecast materializes.
