XRP's Price Plummets Amid Network Outages and Waning Interest

XRP, the native cryptocurrency of the Ripple network, has faced significant challenges recently, with a notable drop in price and concerns raised among investors. The recent 64-minute outage, which temporarily halted transactions, has not helped to boost investor confidence. Additionally, the network's active addresses have dropped by nearly 50% from their December peak, further adding to the concerns.

The Chaikin Money Flow (CMF) indicator for XRP has weakened, with a decline from 0.26 two days ago to 0.19, after briefly dipping to -0.22 three days ago. This suggests that buying pressure has softened, although the indicator has now stabilized around 0.19 and 0.20. The previous drop into negative territory signaled strong selling, but the quick recovery above zero indicates that buyers have stepped in to support the price. However, with CMF lower than its recent high, XRP's bullish momentum has softened.

The number of 7-day XRP active addresses is currently around 256,000, down from 407,000 nearly two weeks ago, marking a 37% decline. While this remains a relatively high value compared to most of 2024, it is still nearly 50% lower than the peak reached in early December. This drop suggests a slowdown in network activity, which could indicate reduced demand or lower transaction volumes. If active addresses continue to decline, it may reflect waning interest or participation in XRP transactions.

XRP's EMA lines indicate that a new death cross could form soon, with a short-term line crossing below its longest-term line. If this bearish signal plays out, XRP price may test the support at $2.32, and if that level is lost, it could drop further to $2.20. A continued decline in active addresses and a weakening CMF could push XRP below $2, with the next key support at $1.99. This would confirm a deeper bearish trend, making recovery more difficult, especially if new outages occur.

On the other hand, if the hype around XRP returns to levels seen in recent months, it could break the $2.60 resistance. A strong breakout above this level could lead to a test of $2.82, and if momentum builds