XRP's Active Addresses Plummet: Price Stability at Risk

XRP's Declining Active Addresses Spark Concerns Over Future Price Stability and Network Engagement

XRP, the native cryptocurrency of the Ripple network, has witnessed a significant downturn in active addresses, raising concerns about its market stability and potential price fluctuations. This reduction in active engagement may indicate waning investor interest, signaling a cautious atmosphere within the cryptocurrency market.

According to data from Glassnode, XRP's active addresses peaked at over 203,000 in early December 2024. However, this peak has now turned into a steady decline, culminating in only about 82,000 active wallets currently engaged. This drastic drop of more than 50% signals reduced market participation and typically correlates with reduced transaction volumes, suggesting a potential downturn in price momentum.

Historically, periods of fewer active addresses have been precursors to falling prices, as diminished activity may lead to reduced investor confidence and interest. In line with the downturn in network activity, XRP has succumbed to a bearish trend. The recent 12-hour chart reveals a classic head and shoulders pattern, a strong indicator of potential further declines ahead. Currently, XRP's trading price is around $1.9939, marking a reduction of 9.23% in the preceding 24 hours.

The 50-day Moving Average (MA) stands at $2.5019, indicating an ongoing selling pressure. This tells us that many investors are eager to sell, creating fewer opportunities for price recovery. Additionally, the trend observed in the Accumulation/Distribution (A/D) indicator reflects a movement downward, suggesting that larger holders of XRP are more inclined to exit their positions rather than accumulate more, showing a lack of confidence in the asset's near-term prospects.

With the decline in both network activity and price performance, XRP is at a pivotal point. A resurgence in active wallets is essential for any recovery trajectory. Continuing to see a drop in active addresses could result in XRP testing a critical support range between $1.80 and $1.85. Conversely, if active addresses witness a notable uptick, this could instill renewed investor confidence, potentially stabilizing prices and creating momentum for a rebound. For a bullish outlook, reclaiming the resistance range of $2.20 to $2.