Key Takeaways:
- XRP forms a bearish descending triangle, signaling a potential 45% drop to $1.20.
- Declining daily active addresses indicate reduced network activity and liquidity.
- A breakout above $2.18 could invalidate the bearish pattern.
Bearish Descending Triangle Threatens XRP Price
The XRP price chart reveals a descending triangle pattern, a bearish technical formation characterized by flat support (around $2.00) and downward-sloping resistance. This pattern often resolves with a breakdown, potentially driving prices lower by the triangle’s height ($1.20 target).
Critical Support Levels to Watch
- $2.18 (50-day SMA): A break below this level could accelerate selling pressure.
- **$2.00 (Psychological Support):** Failure to hold may trigger a 45% decline toward $1.20.
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Declining Network Activity Signals Weakness
On-Chain Data Highlights:
- Daily Active Addresses (DAAs): Dropped from 608,000 (March 2025) to ~30,000 (May 2025).
- Implications: Lower DAAs suggest reduced transaction volume and weakened investor confidence, historically preceding price stagnation or drops.
"Reduced network activity often correlates with liquidity crunches and bearish momentum."
Potential Scenarios for XRP
Bearish Outcome
- Breakdown below $2.00 → $1.20 target by late May.
- Sustained low DAAs may prolong downward pressure.
Bullish Reversal
- Breakout above $2.18 resistance → Potential rally to $3.00.
- Requires renewed network activity and buying volume.
FAQ: XRP Price Risks
1. Why is XRP forming a descending triangle?
- The pattern reflects weakening demand amid consistent selling pressure at lower highs.
2. What does declining network activity mean for XRP?
- Fewer active addresses suggest reduced usage, often a bearish indicator for price.
3. Can XRP recover if it holds $2.18?
- Yes, holding the 50-day SMA could invalidate the bearish pattern and attract buyers.
4. How low could XRP drop if support breaks?
- A 45% decline to $1.20 is possible if $2.00 fails as support.
👉 Explore real-time XRP analysis
Final Notes:
- Monitor key levels ($2.18 and $2.00) for directional cues.
- Declining DAAs underscore the need for caution.
- Always conduct independent research before trading.