After rising to a multi-week high of $1.60, the XRP price quickly fell due to escalating geopolitical and macroeconomic tensions, leading to a general market downturn. This recent decline was also influenced by macroeconomic signals, particularly comments from Federal Reserve Chairman Jerome Powell, which raised doubts about the likelihood of further rate cuts this year, as the Fed aims to adopt a data-driven strategy amid persistent high inflation.
Although the market has yet to recover from the shock and the total market capitalization of cryptocurrencies continues to struggle, some indicators seem to bring hope for XRP's long-term prospects.
Meanwhile, the network's daily active addresses have risen to a five-week high this week, reaching 46,767 active addresses.
These indicators suggest that the network's fundamental utility and participation remain strong, and demand may continue once the overall market stabilizes.
XRP Price Analysis
On the daily chart, the XRP price has formed an Adam and Eve pattern, a widely recognized bullish reversal pattern in technical analysis. Earlier this week, the XRP price touched the neckline of this pattern at $1.60 but then experienced a pullback. A confirmed breakout could trigger a strong short-term rebound.
The 20-day simple moving average (SMA) appears to be approaching a bullish crossover with the 50-day SMA. Meanwhile, the MACD line is also moving upward, suggesting that bullish momentum is quietly building.
Currently, traders will closely monitor the psychological resistance level at $1.50. A breakout above this level could encourage bulls to further challenge the $1.60 resistance, which would also confirm the validity of the Adam and Eve pattern. The next potential target would be the 100-day SMA at $1.70.
From a bearish perspective, a drop below $1.44, which is the 50-day SMA, could invalidate the bullish forecast.