**XRP Struggles for Momentum as Investor Activity Declines: What’s Next for the Price?**
XRP has traded sideways for several days, struggling to find momentum amid weak market conditions. The lack of bullish signals across the broader crypto sector has left the token consolidating near key support levels. Adding to the pressure, investor participation and profitability are both on the decline, hinting at potential downside risks for XRP.
**Investor Participation Drops**
New XRP addresses have seen a noticeable drop, reflecting waning interest from fresh investors. Earlier this month, new wallet creation surged to a four-month high, but it has since fallen sharply to around 6,336. This cooling growth signals that new buyers see little incentive to invest in XRP at current levels.
Such a decline in participation can weaken liquidity and stall any price recovery. Without an influx of new capital, the demand needed to push XRP higher may be missing. If this trend continues, the altcoin could remain trapped in a narrow trading range.
**Profitability Weakens for Long-Term Holders**
The MVRV Long/Short Difference currently sits near 3%, reflecting shrinking profits for long-term holders (LTH). Historically, positive readings indicate healthy profitability, while declining values point to eroding gains. The recent dip suggests that even experienced investors are now seeing lower returns from their holdings.
If long-term holders begin to realize profits or exit positions, this could add to the selling pressure on XRP’s price. Sustained declines in the MVRV ratio often coincide with reduced confidence, increasing the likelihood of minor corrections and further downside.
**XRP Price Outlook: Key Levels to Watch**
XRP is currently trading at $2.32, holding above the crucial $2.28 support level. The altcoin has made multiple attempts to breach $2.36 but has struggled to sustain momentum amid weak investor participation.
Given the current on-chain and technical setup, XRP could continue consolidating between $2.28 and $2.13 if selling pressure grows. A break below $2.13 would reinforce a bearish outlook and delay any potential recovery.
However, if investor confidence improves and inflows strengthen, XRP could successfully flip $2.36 into support. This move would open the path toward $2.45 or even $2.52, signaling renewed bullish sentiment and invalidating the current bearish thesis.
**Conclusion**
For now, XRP’s price action is likely to remain subdued until either fresh capital enters the market or long-term holders regain confidence. Investors should closely watch key support and resistance levels to gauge the next significant move for XRP.
https://bitcoinethereumnews.com/tech/new-xrp-buyers-are-fading-will-price-dump-again/