XRP News Today: XRP Price Drops 70% Amid Legal Uncertainty and Decreasing Network Activity

The price of XRP, the cryptocurrency associated with Ripple, has experienced a significant decline due to a combination of legal setbacks and decreasing network activity. The latest development in the long-standing lawsuit between Ripple and the SEC has added to the uncertainty, with Judge Torres rejecting a joint motion to settle penalties over alleged securities violations. This ruling has reignited legal concerns, causing investors to become cautious and leading to a drop in XRP's price below key support levels.

The on-chain metrics for XRP Ledger also paint a concerning picture. There has been a notable decrease in trading activity, which could be attributed to the sluggish price behavior and uncertain market conditions. The daily active addresses have seen a substantial decline, and the daily payments on the XRP ledger have dropped by nearly 70% this month. This reduction in network activity suggests a decrease in global demand for XRP, whether it be fewer transfers, fewer DeFi interactions, or less developer interest.

Despite the bearish trend, there are technical indicators that suggest XRP may be poised for a recovery. The token has reached the edge of a descending triangle, and the Relative Strength Index (RSI) is attempting to rise above the descending trend line. Additionally, the Chaikin Money Flow (CMF) remains within the positive range, displaying a bullish divergence. However, if XRP fails to hold above the support zone, a pullback to $1.62 is possible.

Multiple cryptocurrency exchanges have reported a significant decrease in their XRP reserves, amounting to billions of dollars. This reduction suggests a shift in market dynamics and a potential lack of confidence among investors. The decrease in reserves could be due to investors moving their holdings to other cryptocurrencies or converting them into fiat currencies, further contributing to the price decline.

The ongoing legal battle between Ripple and the SEC continues to impact the price outlook of XRP. Regulatory clarity in this case could serve as a significant catalyst for future price movements. However, the current regulatory environment remains uncertain, with banks and ETFs still banned from buying XRP, which has stalled price action and delayed the implementation of new banking solutions.

Despite the price decline, XRP has seen a dramatic increase in user activity and open interest. The number of active addresses has surged, reaching 181,000, and the number of wallets holding over 1 million XRP has climbed to around 2,850, indicating a strong institutional presence. The open interest in XRP futures markets has held firm at $2.8 billion, reflecting that traders have maintained large exposures despite the price drop. This combination of increased user-level on-chain activity and speculative positioning in the derivatives market suggests that there may be underlying momentum behind XRP that is not fully reflected in its price.

With 80.2% of the XRP supply currently in profit, many holders are likely in a psychological position to either take gains or re-engage in the market. Futures data signals that traders are not exiting positions despite the price drop, which is usually a positive sign for those watching for re-entry or breakout setups. If this pattern holds, XRP could be setting up for a shift in both price action and sentiment. The steady volume suggests ongoing interest rather than a sell-off, and the current chart reveals that the price is pulling back from a high near $2.22 earlier in the day, indicating potential oversold conditions ahead of the next move.