According to Cointelegraph, recent on-chain analysis suggests that XRP, despite its impressive rally of over 385% since late 2024, may be approaching a market top. More than 70% of XRP's realized market capitalization has been accumulated between late 2024 and early 2025, indicating that many investors bought at higher prices. This pattern, observed by Glassnode, mirrors previous market tops where newer investors, sensitive to price fluctuations, often trigger significant sell-offs during corrections. Historical data shows that similar conditions in late 2017 and 2021 led to substantial declines in XRP's value, raising concerns about a potential local top forming in January 2025.
XRP's network activity has also seen a significant decline. After reaching record levels in March 2025, the number of active addresses has plummeted by over 90%, returning to pre-breakout levels. This drop in activity, while not a definitive warning, suggests that fewer people are using XRP for transactions, with more investors opting to hold the cryptocurrency instead. Such divergences between rising prices and falling on-chain activity have historically appeared near local market tops, as seen in late 2017 and early 2021.
Technical analysis of XRP's price movements indicates a potential 25% decline. The cryptocurrency's weekly chart reveals a consolidation within a falling wedge pattern. As of May 26, XRP showed signs of entering a short-term correction cycle after failing to break above the wedge's upper trendline. A broader pullback could see XRP's price move towards the wedge's lower trendline, aligning with the 50-week exponential moving average near $1.76, representing a potential 25% drop from current levels. This analysis highlights the importance of caution for investors, as market conditions suggest possible further declines. Readers are advised to conduct their own research and consider the inherent risks in investment decisions.
