XRP Dips to $2.75 as Risk-Off Sentiment Grips Crypto Market
XRP extended losses on Monday, sliding 1.94% to $2.75 amid a broader risk-off sentiment in the crypto market. The Crypto Fear & Greed Index has fallen into the fear zone, reflecting growing investor caution. On-chain metrics reveal active addresses on the XRP Ledger plunged from around 50,000 in mid-July to about 19,250, indicating reduced network participation. Open interest in XRP derivatives contracted to $7.7 billion from $10.94 billion. Technically, XRP is testing key support at $2.70 within a descending triangle. A hold above this support level could spark a rebound toward $3.09 and $3.70, while a break below may drive XRP down toward $2.08. Traders should monitor these critical levels for short-term signals.
Bearish
The recent downturn in XRP reflects clear bearish pressure. The 1.94% drop below $2.75 amid declining on-chain metrics mirrors previous risk-off episodes, such as early 2023 when active addresses plunged and triggered sell-offs. A falling Crypto Fear & Greed Index and contracting open interest in XRP derivatives underscore growing trader caution. If the $2.70 support fails, XRP may test lows near $2.08, similar to past breakdowns that led to accelerated declines. Conversely, a solid defense of key support could prompt a medium-term rebound, as seen when XRP bounced off $2.40 in June. Overall, the immediate outlook is bearish, though successful support holds might stabilize prices over the medium term.