XRP’s Active Addresses and Market Sentiment

XRP’s active addresses have steadily declined, suggesting reduced engagement and potential price volatility ahead.

A key support level is under pressure, and if broken, further downside could occur despite broader market conditions.

The number of active Ripple (XRP) addresses has significantly dropped over the past three months, raising concerns about reduced network activity and its potential impact on price trends.

This drop in engagement has coincided with a broader price correction, leading to speculation about the future trajectory.

XRP Active Addresses and Market Sentiment

Glassnode data shows that XRP’s active addresses peaked in early December 2024 before beginning a steady decline. Analysis revealed that the number surged to over 203,000.

The latest data indicates a significant decrease in active wallets, typically reflecting lower transaction volumes and reduced market participation. Currently, the number is around 82,000, marking a decrease of over 50%.

Historically, sustained declines in active addresses correlate with price stagnation or downward movements, as fewer transactions suggest waning investor interest.

Price Trend and Technical Indicators

XRP has been following a bearish trend, mirroring the drop in network activity. The 12-hour chart reveals a head and shoulders pattern, a classic bearish reversal indicator, suggesting that XRP could continue its downtrend if key support levels fail to hold.

As of now, XRP was trading at $1.9939, reflecting a 9.23% decline in the last 24 hours. The 50-day Moving Average (MA) was $2.5019, significantly above the current price, indicating persistent selling pressure.

Additionally, the Accumulation/Distribution (A/D) indicator showed a downward trend, reinforcing the notion that large holders are exiting their positions rather than accumulating.

What This Means for XRP’s Future

With declining network participation and bearish price action, XRP requires a resurgence in active wallets to establish a recovery trend. Should active addresses continue to decline, XRP may encounter further downward pressure, potentially testing the $1.80-$1.85 range as the next support level.

Conversely, a sharp increase in active addresses could signify renewed investor confidence, potentially stabilizing prices and setting up a reversal. For a bullish outcome, XRP needs to reclaim the $2.20-$2.25 key resistance zone.

Conclusion

The current downtrend in active addresses and prices warrants caution for XRP investors. Monitoring on-chain activity will be essential in assessing whether the asset is poised for further declines or if a turnaround is imminent.

Until then, XRP remains in a precarious position, heavily reliant on a resurgence in network activity to regain upward momentum.