Key points:
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XRP forms a dwelling bearish triangle in the daily chart, risking a 45% drop to 1.20 dollars.
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The decrease in daily active addresses indicates a reduction in the transaction activity and liquidity.
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A break over 2.18 dollars could invalidate the bearish pattern.
The price of XRP (XRP) shows warning signals while a bearish technical pattern emerges in its daily chart, coinciding with a decrease in network activity.
XRP’s descending triangle suggests a price drop of 45%
The XRP price chart has been forming a descending triangle pattern in its daily chart since its 2024 rebound, characterized by a flat support level and a descending resistance line.
A descending triangle pattern in a graph that is formed after a strong bullish trend is considered an indicator of bearish reversion. As a rule, the configuration is resolved when the price breaks below the level of flat support and falls as much as the maximum height of the triangle.
The bulls are struggling to keep XRP above the single mobile average (SMA) of 50 days, currently in $ 2.18, indicating a lack of strength.
If this trend continues, a closure below the mobile socks, specifically the 50 -day SMA and the 100 -day SMA in $ 2.06, could sink the XRP/USDT torque at the level of psychological support by 2.00 dollars.
If this support fails, the price of XRP could collapse towards the bearish target at around $ 1.20 by the end of May, a 45% drop from current price levels.
The objective of the XRP descending triangle coincides with an earlier analysis that warned of a possible drop up to $ 1.61 if the key support levels are not maintained.
On the contrary, a clear breaking above the resistance line of the triangle at 2.18 dollars will invalidate the bearish structure, positioning XRP favorably for a rebound towards the psychological level of $ 3.00.
Decreased activity in the XRP network
The XRP Ledger Blockchain has experienced a significant fall in the network activity compared to the first 2025 quarter. Glassnode’s on-chain data show that the daily active addresses (DAAS) of the network are now well below the March peak.
On March 19, the Blockchain registered a solid 608,000 DAAS, reflecting a high commitment of users and transaction activity. However, this metric collapsed in April and early May, as shown in the graph below.
With only around 30,000 active daily addresses, user transactions have decreased, possibly pointing out a reduced interest or a lack of confidence in XRP’s short -term perspectives.
Historically, falls in the network activity usually indicate an upcoming stagnation or price drop, since a lower volume of transactions reduces liquidity and purchase pressure.
Meanwhile, the 1.17% drop in XRP in the last 24 hours is accompanied by a 30% increase in the daily trading volume to 2,000 million dollars. The increase in the trading volume in the middle of a price drop can be interpreted as a benefit taking or repositioning by cryptocurrency traders while waiting for the next XRP movement.
The popular Dom analyst commented on the increase in the sales volume, noting that “a large amount of market sales during the last week” is the reason why XRP failed to keep up movements.
This article does not contain tips or investment recommendations. Each investment and trading movement implies risk, and readers must carry out their own research by making a decision.
