Ripple's XRP Active Addresses Plunge 30% Post-SEC Lawsuit

On March 19, the US Securities and Exchange Commission (SEC) officially concluded its four-year-long lawsuit against Ripple, the payment services company. This development sparked a surge in XRP network activity, with the number of active addresses trading the token reaching a year-to-date high on that day, indicating heightened investor interest.

However, this momentum proved to be short-lived. On-chain data reveals a steady decline in the active wallet count since then. On March 19, the active address count climbed to a year-to-date high. However, as the post-lawsuit hype began to wane, XRP demand fell. By March 23, the active address count had plummeted to a 30-day low, highlighting the weakening buying pressure in the market.

A decline in an asset’s active address count suggests reduced transaction activity and waning buying interest. This is a bearish signal, as it indicates declining liquidity, weak investor participation, and decreased utility for XRP. Additionally, on the price chart, XRP remains below its Super Trend Indicator, signaling continued bearish pressure in the market. As of the latest data, this momentum indicator forms dynamic resistance above the altcoin’s price at $2.84.

The Super Trend indicator measures the direction and strength of an asset’s price trend. It appears as a line on the price chart, changing color to signify the trend: green for an uptrend and red for a downtrend. When an asset’s price is below this indicator, the market is in a bearish trend. Traders interpret this as a sell signal or a warning to exit long positions and take short ones.

XRP is currently trading at $2.46, holding above the long-term support formed at $2.13. If bearish pressure climbs, the token could attempt to test this support. Should it fail to hold, XRP’s price could plunge to $2, where another strong support lies. Conversely, if buying activity gains momentum, the altcoin could attempt a break above the resistance at $2.61. If the breach is successful, XRP could climb toward its Super Trend indicator at $2.84.