Ripple token XRP is currently trading at $2.78, down 1.78% over the course of the day, continuing its slide after last week’s sharp sell-off.
The selling pressure is driven by a risk-off crypto market sentiment and a significant drop in on-chain activity, suggesting the price could remain in a bearish trend for the next one to two weeks.
However, a rebound is still possible if the key $2.70 support level holds and the selling pressure begins to subside.
For now, XRP investors remain cautious, with the market index leaning more towards the ‘Fear’ zone than the neutral levels recorded last week.
On-chain activity has also seen a decline, with the number of active addresses falling to around 19,250 on Monday, down from around 50,000 in mid-July.
In the medium term, investors are expected to examine global macroeconomic developments and Bitcoin (BTC) movements, which are often the main drivers of crypto market sentiment, before deciding to repurchase XRP in large quantities.
