The cryptocurrency market experienced a widespread decline after the SEC’s recent actions and XRP followed suit. Despite performing relatively well compared to other cryptocurrencies, XRP couldn’t escape the market downturn. Yesterday, the altcoin reached a monthly high of $0.5447. However, today it experienced a 5% drop, causing its price to plummet to a low of $0.4935.
The recent chart analysis revealed that the altcoin has been experiencing a consistent upward trend over a significant period of time. However, the recent decline has caused the asset’s price to drop below the $0.50 mark. Despite this setback, the asset has shown signs of recovery. Nevertheless, the presence of bearish market conditions may pose challenges for the altcoin to regain its momentum and accelerate further.
The Parabolic SAR indicator formed a resistance line, preventing any upward movement in the price of XRP. Additionally, the Relative Strength Index [RSI] indicator displayed heightened selling pressure in the market. This is in contrast to a few days ago when the asset experienced a surge in buying activity.
Will a rise in network activity help XRP stay afloat?
The XRP network has witnessed a significant increase in network activity recently. One notable metric is the total number of active addresses in the network, which experienced a substantial surge last week. This indicated a growing level of engagement and usage within the XRP network.
Although the mentioned figures have experienced a significant decline, a potential increase in these statistics could have positive implications for the market. A rise in key metrics such as network activity, user engagement, or market participation could potentially contribute to the growth and development of the market.
Furthermore, according to Ali Martinez, the correlation between network growth and the price direction of an asset is worth considering. In the case of XRP, if its network shows signs of recovery and resumes an upward trend, it could potentially lead to a positive push in the price of the asset.
The #Ripple network is expanding as the # of new $XRP addresses trends up!
— Ali (@ali_charts) June 5, 2023
Network growth is often considered one of the most accurate price predictors. Generally, a steady increase in the # of new addresses created on a given blockchain leads to a major price upswing. pic.twitter.com/cI1sVr95pt