XRP Drops 17% Amid Ripple Lawsuit Uncertainty, Active Addresses Triple

XRP, the cryptocurrency associated with Ripple, has experienced a significant drop in value, falling below $2 and declining by 17% over the past week. Despite this bearish trend, on-chain data reveals a surge in network activity, raising questions about the underlying market sentiment. The pending final decision on the Ripple lawsuit, expected on April 16, may be influencing the XRP community's behavior amidst the broader macroeconomic downturn.

According to on-chain data from Glassnode, the number of active XRP addresses more than tripled from February 21 to March 10. On February 21, XRP had 89,606 active addresses, but by March 2, this figure had spiked to approximately 543,000. Although there was a minor dip afterward, active addresses rebounded to 531,000 on March 7. As of March 10, XRP still maintains over 370,000 active addresses—far above its previous levels.

Simultaneously, XRP’s exchange outflows from Binance have significantly declined. On March 7, over $465 million worth of XRP left Binance, marking the highest daily outflow in a month. However, in the past three days, outflows have sharply decreased, suggesting a slowdown in large-scale withdrawals from the exchange. This divergence between price action and network activity raises key questions about market sentiment.

A surge in active addresses typically indicates heightened user engagement, suggesting growing demand or increased transaction volume. However, the decline in Binance outflows may signal reduced accumulation pressure or hesitation among investors to move assets off centralized platforms. This is often interpreted as uncertainty about price direction. Some analysts argue that XRP’s price decline, despite resilient network participation, could point to short-term speculative trading rather than fundamental weakness. The drop in exchange outflows may indicate traders holding onto their assets rather than exiting. Still, without a corresponding price rally, it suggests an equilibrium where neither buyers nor sellers have a decisive advantage.

While the data reveals strong activity on the XRP Ledger, the market remains in flux. Whether this heightened engagement translates into future price recovery or continued consolidation remains to be seen. The upcoming decision on the Ripple lawsuit could provide clarity on the future trajectory of XRP, but for now, the market sentiment remains uncertain. Investors