XRP's price may continue to decline, potentially reaching $2.72, due to increasing selling pressure and concerning trends in blockchain activity.

XRP Technical Outlook

XRP's price faces potential downside risk, indicated by a descending triangle pattern on charts and sustained sell-side dominance. Weakening on-chain activity, including fewer transactions and slower network growth, further supports this bearish outlook. Open Interest has also decreased, suggesting lower derivative participation and reduced speculative bets.

Key Metrics to Watch

Traders should closely monitor Spot Taker CVD, transaction counts, and Open Interest for signals of shifting market sentiment. A move toward buy-side dominance in CVD, increased transactions, and rising Open Interest could invalidate the bearish case. Currently, the probability favors a retest of the $2.72 level.

Trading Recommendations

COINOTAG suggests a disciplined approach with clearly defined plans, watchlists, and flexible order control. Focus on objective data over emotional reactions and design trading strategies that incorporate risk management techniques. Consistent application of a well-defined plan is crucial for navigating volatile markets.

Overall Assessment

The short-term outlook for XRP leans bearish, as multiple signals – technical patterns, sell-side dominance and declining on-chain metrics – align toward lower prices. A meaningful recovery requires increased on-chain engagement and a shift in Spot Taker CVD.