As of May 6, XRP hovered at $2.13, down 2.7% in 24 hours. Although the weekly increase exceeded 5%, market confidence was shaken after falling below the 50-day EMA ($2.20), with the RSI dropping to 47, indicating weakened momentum and short-term downside risk.
On-chain activity has collapsed, and network participation has sharply decreased.
Santiment data shows that XRP active addresses plummeted from a Q1 high of 612,000 to only 40,000, an astonishing decline. The sharp drop in activity indicates insufficient liquidity and weak buying power, while further technical weakness exacerbates market caution.
Whale holdings have significantly increased, with wallets holding 10 million to 100 million XRP rising from 10.91% to 12.32%. Large holders have also increased their positions, currently accounting for 14.37%. Such large purchases are often accompanied by positive expectations, such as favorable lawsuit developments or strategic accumulation ahead of ETF news.
Trading volume has skyrocketed, and the market may experience severe volatility.
Daily trading volume surged nearly 25%, reaching $1.86 billion. Despite the price drop, the market showed high activity. Analysis indicates that this increase in volume may signify that investors are adjusting their positions in preparation for the next market cycle.
Currently, XRP's support level is at $2.10. If this level is breached, it could drop to $1.96 or even $1.61. Conversely, if it can regain the $2.20 level, it may test $2.36 and $2.50, potentially even aiming for the $3 target.
A critical point of long and short battles, the fate of the short term is about to be revealed.
Despite positive signals from whales, technical weakness and user loss bring uncertainty. The next few trading days are crucial and will determine whether XRP experiences a breakout or falls into a deeper correction.
