- XRP experienced a 165% increase in trading volume while market conditions declined indicating positive investor enthusiasm.
- On-chain activity has decreased, reflecting lower user participation, which may negatively impact market sentiment and network adoption.
Ripple’s native crypto, XRP, has experienced a downturn in the last 24 hours, with its price dropping 7.52% and recording an intraday low of $2.09. Despite this decline, trading volume surged by 165%, highlighting increased investor activity. The XRP price chart underwent initial extreme volatility following its brief price increase before following declining patterns that mirrored broader market movements.
On-Chain Activity Signals Decreased Engagement
Recent on-chain data reveals a decline in XRP payments, active accounts, and executed transactions. This suggests lower network activity and a potential reduction in user engagement. Weaker adoption and reduced transaction volume indicate that fewer new users are entering the ecosystem. This slowdown could impact sentiment, as lower on-chain activity often signals a reduced level of confidence in the asset.
Market data from Coinglass shows XRP open interest decreased by 7.47%, bringing the total down to $3.11 billion. This decline suggests reduced speculative trading, which could lead to lower price volatility unless fresh investor interest emerges.
Despite the current market slump, analysts remain optimistic about XRP’s long-term potential. Crypto analyst Ali Martinez has identified a head-and-shoulders pattern forming on the XRP price chart. Typically, this pattern suggests bearish activity, but its impact will depend on XRP’s ability to hold key support levels.
If XRP drops below the neckline, it could confirm a bearish continuation, leading to further losses.
If XRP breaks above the right shoulder, it could invalidate the bearish pattern and push the price toward $5.
Factors Influencing XRP’s Price Outlook
Multiple essential factors currently determine the future price trajectory of XRP. The implementation of a multi-crypto reserve system would lead to improved investor sentiment. The price of XRP has the potential to surpass $3.55 based on the pending SEC appeal decision because the regulatory agency decided to drop the proceedings. XRP price could drop below $1.50 when legal uncertainties continue to exist.
XRP’s price will likely experience an upward trend when an XRP-spot ETF receives regulatory approval because institutional investors will start to buy XRP. XRP’s price remains at risk of staying under pressure because the SEC could continue pursuing its appeal against an XRP-based ETF. Market forces such as U.S. economic performance and changes in tariffs will exert an impact along with other macroeconomic factors.
Technical Indicators Present Mixed Sentiment
Technical indicators show a mixed outlook for XRP. The Relative Strength Index (RSI) at 42.15 suggests that XRP is approaching oversold territory, which could attract buyers. Meanwhile, the Chaikin Money Flow (CMF) at 0.08 indicates mild capital inflows, hinting at reduced selling pressure. However, past bearish RSI divergences have contributed to downtrends, and XRP requires stronger buying volume to establish a sustained recovery.
XRP’s next major upward push toward $3.00 will require it to surpass the $2.50 resistance barrier. The price rejection at $2.50 will require support from $2.00 to stop the market from declining lower. Any breach of $2.00 could initiate a price descent toward $1.80. The price would have the potential to reach $3.50–$4.00 if it manages to surpass $2.50–$2.75 in a sustained upward move.
