Ripple's bullish price outlook is in danger...for these reasons

Although Ripple (XRP) price may not be among the best performing cryptocurrencies this quarter, it remains on an upward trend.

However, this uptrend may stall for a while as the fragile conviction of XRP holders could lead to a decline in prices.

Are Ripple Investors Skeptical?

The price of XRP, like any other token in the crypto market, tends to be heavily influenced by the actions of its long-term holders (LTH). Hoarding them tends to drive the price up, while selling causes deep pullbacks.

In the case of the native token Ripple, these long-term investors are in the habit of moving their assets monthly, which is taken into account at this stage. However, recently the consumption age metric, which multiplies the total volume moved by the time since the last move, has shown spikes over the past few days.

These rallies, being outside the trend, indicate that XRP LTH is moving its holdings in uncertain market conditions. This may be an attempt to sell their property to make a profit or offset losses.

Either way, you might encounter Alternative currency has a bearish effect On this development.

Additionally, the total stake of XRP holders has decreased significantly. The total number of investors transacting on the network began to decline in December 2023.

This decline has continued until now, which is a negative sign for the cryptocurrency.

Read more: How to buy Ripple currency in the easiest way?

The decrease in active addresses shows that engagement has decreased, which is a bearish development for the price of XRP.

Ripple XRP Price Prediction: Return to Major Support

XRP price is trading at $0.53, managing to secure the 23.6% Fibonacci retracement level as support. This level is also known as the bear market support floor and staying above it during bear market conditions prevents excessive declines.

This specific $0.51 level is a potential target for the altcoin. The above factors, if they start to decline, could cause the price of XRP to drop to this price level. Losing it could also mean missing the uptrend line support that sends the altcoin to $0.50 or lower.

Read more: Ripple (XRP) Price Forecast 2024/2025/2030

However, if broader market signals remain in favor of a gradual uptrend, XRP price could prevent a pullback and continue to rise. As a result, the bearish thesis will be invalidated and the altcoin could rise as high as $0.56.