XRP's Bearish Storm: Active Addresses Rebound Amid Legal Uncertainty

XRP, the native cryptocurrency of the Ripple network, has been grappling with significant challenges in recent weeks, with its price experiencing a nearly 30% decrease over the past month. Currently trading below $3, XRP faces strong bearish sentiment, as indicated by the Directional Movement Index (DMI). The Average Directional Index (ADX) has climbed above 35, reflecting renewed selling pressure and a profound bearish trend.

The DMI for XRP reveals that its ADX is currently at 36.98, a significant increase from 15.89 just four days ago. This rise suggests that the ongoing downtrend is gaining momentum, with market participants showcasing stronger conviction. The widening gap between the ADX and the directional indicators further confirms the robustness and persistence of the downward trend. Until the Positive Directional Indicator (+DI) crosses above the Negative Directional Indicator (-DI), signaling a potential trend reversal, XRP is likely to remain in a bearish phase.

Interestingly, active addresses for XRP are showing signs of recovery, which may hint at a potential rebound in price amid the turbulent market conditions. The number of 7-day XRP Active Addresses plummeted from 407,000 on January 20 to about 186,000 on February 19, marking the lowest level since November 2024. However, recently, XRP Active Addresses have begun to recover, now reaching 236,000—an increase of 26.8% in just one week. This boost suggests that user activity is ramping up, reflecting renewed interest in the network and potentially leading to higher demand.

XRP's uptrend largely depends on the outcome of the ongoing lawsuit between the SEC and Ripple. The exponential moving average (EMA) lines currently exhibit a bearish alignment, with shorter-term lines positioned below longer-term ones. If the downward momentum persists, XRP could test two significant support levels at $2.15 and $2.06. Should these levels be breached, XRP's price might fall to $1.77, dipping below $2 for the first time since November 2024. However, a trend reversal could be on the horizon, particularly if the SEC drops its lawsuit against Ripple in March. If a resolution