XRP Faces Steep Drop as Network Activity Falters and Bearish Pattern Builds

XRP Faces Steep Drop as Network Activity Falters and Bearish Pattern Builds

Crypto Traders Brace for a Potential 45% XRP Price Slide

XRP’s price is at a critical inflection point, with a bearish technical formation and weakening ledger activity threatening a sharp 45% decline. Market analysts are warning that if XRP fails to hold key support levels, the token could tumble to $1.20, a level not seen in months.

Descending Triangle Signals Trouble Ahead

Since its late 2024 rally, XRP has been trading within a descending triangle, a pattern often associated with a bearish reversal. This chart setup is defined by a flat support level and a downward-sloping resistance, suggesting that the price may soon break downward.

According to the daily chart, the critical support line sits just above the $2.00 psychological barrier. If XRP closes below its 50-day and 100-day simple moving averages (currently at $2.18 and $2.06, respectively), the market could see an accelerated sell-off.

Technical projections show a downside target of $1.20, which would represent a 45% plunge from current levels. This would mirror previous warnings from analysts who anticipated a fall to $1.61 if XRP lost momentum.

“The bulls are losing control. A break below $2 could open the floodgates,” said a senior trader familiar with the setup.

Network Activity Collapse Undermines Bullish Case

The bearish sentiment isn’t just confined to the charts. On-chain data paints a troubling picture. Daily Active Addresses (DAAs) on the XRP Ledger have dropped more than 95% since their peak on March 19, when activity surged to 608,000 addresses.

By early May, this number had plummeted to just 30,000, a sign of dwindling user engagement and transactional activity.

“When users disappear, so does liquidity,” noted one blockchain analyst. “Fewer transactions often foreshadow weaker prices.”

This dramatic drop in activity suggests a potential crisis of confidence among XRP holders, which could further pressure prices in the short term.

Volume Spike Suggests Traders Are Positioning

While XRP declined 1.17% in the past 24 hours, its trading volume jumped 30% to $2 billion. This discrepancy between falling price and rising volume typically points to profit-taking or repositioning, as traders adjust for the possibility of further downside.

Crypto analyst Dom flagged a wave of aggressive market selling as the main culprit behind XRP’s recent failures to break above key resistance levels.

“There’s been a large amount of market selling over the last week. That’s why XRP can’t hold gains,” he stated.

Still, there remains a bullish scenario: if XRP breaks out above the triangle’s upper resistance at $2.18, the bearish pattern would be invalidated, potentially opening the door for a rally toward $3.00.

Outlook: Critical Levels to Watch

In the coming days and weeks, XRP investors should keep a close eye on:

• $2.18 resistance – A breakout could spark renewed buying.

• $2.00 support – A break below this could confirm the bearish trend.

• Network activity metrics – Continued stagnation may signal further downside.

For now, the balance of risk appears tilted to the downside, as technical and fundamental indicators align in a concerning pattern. Unless something changes quickly, XRP could be in for a turbulent May.