TLDR
- XRP price has fallen below $2.20, trading around $2.14, down 1.2% daily and 8% weekly
- Network activity has decreased to around 40,000 daily active addresses, the lowest since November 2024
- A bearish trend line has formed with resistance near $2.1750 on the hourly chart
- Developer activity on XRPL has increased 196% in the last 30 days
- Technical indicators show XRP in a neutral-to-bearish position with support at $2.08 and $2.03
XRP (XRP) has entered a challenging phase in the cryptocurrency market, with prices trending downward and key support levels coming under pressure. Currently trading at approximately $2.14, the digital asset has experienced a 1.2% decrease in the last 24 hours and more than 8% over the past week.
The cryptocurrency began a fresh decline below the $2.20 zone and has continued to slide below both the $2.180 level and the 100-hourly Simple Moving Average. This downward movement mirrors similar corrections seen in other major cryptocurrencies like Bitcoin and Ethereum.
Bears pushed the price below the $2.120 support zone, with a recent low forming at $2.095. The price now trades below the 23.6% Fibonacci retracement level of the downward move from the $2.2579 swing high to the $2.095 low.
A key bearish trend line has formed with resistance near $2.1750 on the hourly chart of the XRP/USD pair. This technical formation suggests continued selling pressure in the short term.
On the upside, XRP faces resistance near $2.1320. The first major resistance level sits at approximately $2.1750, coinciding with the 50% Fibonacci retracement level of the recent downward move.
Trading Range and Network Activity
XRP has been range-bound for nearly a month, trading between $2.03 and $2.30. The price action has leveled off after failing to break out of this corridor in March, creating a consolidation pattern that traders are watching closely.
On-chain metrics paint a concerning picture. According to Santiment data, the number of daily active addresses on the XRP Ledger has dropped to approximately 40,000, marking the lowest level since November 2024. This represents a dramatic decline from March, when daily activity consistently registered around 300,000 addresses and peaked at over 612,000 on March 19.
Large transactions exceeding $100,000 have also decreased, falling from over 1,500 at the March peak to roughly 1,000 per day. This reduction in high-value transfers often indicates decreased institutional interest or large holder activity.
Should XRP fail to clear the $2.1750 resistance zone, another decline may begin. Initial support on the downside is near the $2.10 level, with the next major support at approximately $2.08.
A downside break below $2.08 could send the price toward the $2.05 support level. The next major support level sits near $2.02, which bulls will likely defend aggressively.
Despite slowing network usage, development activity appears to be gaining momentum. The last 30 days saw a 196% increase in developer contributions to the XRP Ledger, suggesting that new protocols and updates are in development.
On May 5, two protocols announced their debut on XRPL: the tokenized index fund Vaultro Finance and the decentralized lending protocol XpFinance. These launches, along with Ripple’s acquisition of prime broker Hidden Road, could potentially revitalize interest in the XRP ecosystem in the coming months.
From a technical analysis perspective, XRP maintains a neutral-to-bearish posture. The relative strength index (RSI) stands at 44.7, placing it in the neutral zone, while the stochastic RSI suggests that XRP is in oversold territory. The moving average convergence divergence (MACD) indicator points to a short-term downward trend.
The hourly MACD for XRP/USD is gaining pace in the bearish zone, and the RSI has dropped below the 50 level, both bearish signals in the short term.
All short to mid-term moving averages are trending lower and giving “sell” signals. Only the 200-day estimated moving average, currently at $1.99, provides some support for the price.
If XRP breaks below $2.03 with substantial volume, a deeper correction toward the 200-day average or lower may occur, especially if on-chain activity remains weak. Conversely, a decisive move above $2.30 could trigger a breakout toward the next resistance level near $2.45.
For now, XRP appears to be in a holding pattern with a slight bearish bias. The low user activity and decline in transaction volume may dampen market sentiment, despite eased legal pressure from the SEC and growing development activity.
The price is at a technical junction point, with traders closely monitoring whether the $2.00 psychological support level will hold in the coming days.
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