XRP News Today: XRP's 385% Rally Faces Correction Risks Amid Cooling Activity

XRP, the cryptocurrency, has experienced a significant rally of over 385% since late 2024. However, recent onchain analysis suggests that this surge may have attracted buyers at increasingly vulnerable levels, potentially indicating a market top.

More than 70% of XRP’s realized market capitalization has been accumulated between late 2024 and early 2025. This measure, which is based on the price at which each token last moved, shows that a large portion of the value has been added recently. This top-heavy market structure is historically fragile, as newer investors tend to be more sensitive to price swings, often triggering sharper sell-offs during corrections. In late 2017, XRP saw a massive influx of capital from young coins just before peaking near $3.55, followed by a prolonged 95% drawdown. A similar pattern was observed in 2021, when another sharp rise in the realized cap by short-term holders preceded a nearly 80% decline. This raises the possibility that XRP may have formed a local top in January 2025 and will continue declining in the coming months.

XRP’s network activity has also shown signs of cooling. The number of active addresses spiked sharply in March 2025, hitting record levels. Since then, activity has dropped by over 90%, returning to levels seen before the breakout. Historically, similar divergences between rising prices and falling onchain activity have appeared near local market tops. This sharp drop in active addresses could mean fewer people are using XRP to send or receive funds, and more are just holding.

Technical analysis of XRP’s weekly chart shows the price consolidating within a falling wedge pattern. As of May 26, the cryptocurrency was showing signs of entering a short-term correction cycle after failing to break above the wedge’s upper trendline. A broader pullback could push the XRP price toward the wedge’s lower trendline, which aligns with the 50-week exponential moving average near $1.76, down about 25% from the current levels.

In summary, the recent rally in XRP’s price may be at risk due to several factors. The top-heavy market structure, the cooling of network activity, and the technical indicators all suggest that a correction could be on the horizon. Investors should conduct their own research and be cautious when making decisions in this volatile market.