**XRP’s Active Addresses Take a Dive: What It Means for Investors**
XRP has seen a staggering 50% drop in active addresses, plummeting from 203,000 to just 82,000 since December 2024. This significant decline indicates a waning engagement with the network, raising concerns about potential price risks. As a result, XRP’s price has dipped by 9.23%, currently trading at $1.99, and is now below crucial technical indicators, including the 50-day moving average of $2.50. According to blockchain analytics firm Glassnode, this drop in active wallets aligns with XRP’s recent price decline to $1.9939, reflecting a broader correction in the cryptocurrency market.
The price chart for XRP reveals a head-and-shoulders pattern, a technical signal often associated with possible price downturns. The token is trading beneath its 50-day moving average ($2.5019), indicating ongoing selling pressure. Additionally, the Accumulation/Distribution indicator, which monitors buying and selling trends, suggests a decrease in demand.
Analysts at ETHNews point out that a prolonged period of low network activity has historically been linked to price stagnation or declines. If the selling trend continues, XRP may test support levels around $1.80. For a rebound to occur, the token would need to reclaim the resistance zone between $2.20 and $2.25, along with a revival in wallet activity. While some investors view this slump as a potential buying opportunity, the lack of transactional momentum raises concerns about XRP’s short-term outlook. Market participants are keenly awaiting signs of renewed network engagement to assess recovery prospects.
Currently, XRP is trading at $2.04 USD, reflecting a 4.57% decrease in the last 24 hours. Over the past week, the price has dropped by 22.06%, and in the last month, it has fallen by 31.42%. Despite these recent declines, XRP has experienced a remarkable 255.05% increase over the past year, highlighting its long-term growth potential. The token reached its peak price of $3.40 USD on January 16, 2025, but has since seen a decline of approximately 35%, dropping from $2.60 to its current value of $2.04. This recent downturn has been partially attributed to ongoing regulatory challenges with the SEC, which continues to cast uncertainty over XRP’s price movements.
In summary, while the current landscape may seem daunting for XRP holders, the long-term growth potential remains significant. Investors are encouraged to stay informed and watch for signs of renewed activity within the network, which could signal a turnaround in XRP’s fortunes.
