XRP News Today: XRP faces 18% drop risk as bearish signals and weak on-chain metrics intensify

Generated by AI AgentCoin World
Wednesday, Aug 20, 2025 3:19 pm ET1min read
Aime RobotAime Summary

- XRP faces 18% drop risk as bearish technical patterns and on-chain metrics confirm prolonged downtrend.

- Descending triangle breakdown below $2.95 support and RSI divergence signal weakening momentum and profit-taking.

- Daily active addresses plummeted 95% to 33,000 while XRP Ledger transactions fell 51%, reflecting reduced user engagement.

- Negative 90-day CVD highlights sustained selling pressure, with sellers dominating as buyers lose control of price action.

XRP’s price is currently forming a bearish trajectory, with several on-chain and technical indicators suggesting a continued downtrend. The altcoin has fallen 23% from its multi-year high of $3.66, and multiple data points now support the possibility of further declines toward $2.40 or even $2.24 [1]. A bearish descending triangle on the daily chart confirms this risk, as

XRP
recently broke below the support line at $2.95, triggering a measured move to $2.40, representing an 18% decline from current levels [1]. This pattern is a widely recognized bearish formation, with a flat support line and a descending upper trendline [1].

In addition, a growing bearish divergence between XRP/BTC and its relative strength index (RSI) highlights further weakening in the asset’s momentum. While the XRP/BTC pair formed higher lows from July 10 to August 18, the RSI moved lower, dropping from overbought conditions at 75 to 43 over the same period, signaling a weakening uptrend [1]. This divergence often prompts traders to take profits and reduce exposure as buyer interest wanes [1]. XRP/BTC is now sitting above a key support zone between 0.0000245 BTC and 0.0000250 BTC. A break below this area could accelerate the pair’s decline and further depress the XRP price [1].

Network activity has also seen a dramatic slump, with daily active addresses (DAAs) falling from over 600,000 in March and 577,134 in June to just 33,000 as of the latest data [1]. On-chain data from Glassnode shows a significant drop in user engagement, which may reflect a lack of confidence in XRP’s near-term outlook [1]. Alongside this, the number of transactions on the XRP Ledger has dropped by 51% from June’s 2.5 million to just 1.25 million [1]. Such a sharp decline in transaction volume and active addresses typically precedes price stagnation or further declines, as reduced liquidity and momentum hinder potential upward moves [1].

Further reinforcing the bearish bias is the negative 90-day spot taker cumulative volume delta (CVD) on XRP, which indicates that selling pressure has dominated since late July [1]. The CVD, which measures the difference between buy and sell volume over a three-month period, has remained negative, signaling that traders are locking in profits and that sellers are gaining control [1]. If this trend continues, it could prolong the downward move and lead to more aggressive profit-taking, particularly as many positions are now in positive territory [1].

Taken together, these factors—bearish technical patterns, declining on-chain metrics, and negative volume imbalances—paint a consistent picture of a market that is losing momentum and facing increased downward pressure. Traders and investors should remain cautious as the environment continues to favor sellers over buyers.

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Source: [1] XRP’s price downtrend could continue: Here’s 4 reasons why (https://coinmarketcap.com/community/articles/68a61c2f1440f33b5a62eb04/)