According to Cointelegraph, XRP is currently exhibiting a bearish descending triangle pattern on its daily chart, which could lead to a significant price drop. This pattern, which has been forming since the late 2024 rally, is characterized by a flat support level and a downward-sloping resistance line. Typically, such a pattern following a strong uptrend indicates a bearish reversal, suggesting that if the price breaks below the flat support level, it could fall by the maximum height of the triangle.
The XRP price is struggling to maintain its position above the 50-day simple moving average (SMA), currently at $2.18, indicating a lack of bullish momentum. Should this trend persist, a close below both the 50-day SMA and the 100-day SMA at $2.06 could push the XRP/USDT pair down to the psychological support level of $2.00. If this support fails, the price could plummet to around $1.20 by the end of May, marking a 45% decline from current levels. This potential drop aligns with earlier analyses that warned of a decline to as low as $1.61 if key support levels do not hold. Conversely, a breakout above the resistance line at $2.18 would invalidate the bearish pattern, potentially setting the stage for a rally toward the $3.00 level.
In addition to the bearish technical pattern, XRP is also experiencing a decline in network activity. Data from Glassnode reveals a significant drop in daily active addresses (DAAs) on the XRP Ledger compared to the first quarter of 2025. On March 19, the ledger recorded a peak of 608,000 DAAs, indicating high user engagement and transaction activity. However, this number has drastically decreased to around 30,000 daily active addresses in April and early May, suggesting reduced interest or confidence in XRP's near-term prospects. Historically, such declines in network activity often precede price stagnation or drops, as lower transaction volumes reduce liquidity and buying pressure.
Despite a 1.17% drop in XRP's price over the last 24 hours, there has been a 30% increase in daily trading volume, reaching $2 billion. This increase in trading volume amid a price decline could indicate profit-taking or repositioning by traders as they anticipate XRP's next move. Analyst Dom noted the increased selling volume, attributing XRP's inability to sustain upward movements to significant market selling over the past week. This article does not offer investment advice, and readers are encouraged to conduct their own research before making investment decisions.
