Ripple: XRP might Sink To $2 mark

The Ripple-based token struggled to break through key resistance at $2.5 despite Bitcoin breaking above the $85K mark in the early hours of Monday.

Ripple-based token struggled to break through a key resistance level at $2.5 despite Bitcoin breaking above the $85K mark in the early hours of Monday.

What Happened: Market action showed XRP’s bullish run switching off despite Ripple's closure with SEC. There are indications of strain in XRP's macro momentum. On-chain data showed the growth of XRP's network is now at its lowest point in four months because of reduced production of XRP addresses.

The altcoin is trading just below the $2.5 resistance level. XRP has failed to break through this level twice this month amid weak market conditions.

The absence of new address creation for XRP indicates that the altcoin is having trouble luring new investors. The token's prospects are hampered by no market incentives for new investors to join the Ripple network. XRP's inability to overcome this resistance may indicate that the consolidation phase will continue given the state of the market.

Top traders are also noting the possibility of a steeper decline for XRP. According to Ben AZIVA, XRP might be setting up for a steeper decline if it fails to hold the $2.2 support.

"If we break the 2.20 support, then the next level of support is around 1.80, and if that breaks, we might see a drop to the 2.0 or lower. This is a crucial metric for assessing a cryptocurrency's traction in the market, as a surge in active addresses typically signifies increased adoption."

— Ben AZIVA (@Ben__AZIVA) August 13,