$XRP

The price of XRP is under increasing bearish pressure, with technical analysis suggesting a significant risk of a 45% drop to the $1.20 level. This gloomy outlook is based on the formation of a descending triangle pattern on the daily chart, a figure that historically precedes considerable bearish moves once the lower support is broken.

In addition to the technical pattern, a notable decrease in activity on the XRP Ledger network has been observed. The number of daily active addresses has drastically decreased from a peak of 608,000 in March to around 30,000 in May. This reduction in transactional activity and liquidity could exacerbate the downward pressure on the price of XRP.

If the price fails to maintain above the key support level, the projection of a drop to $1.20 by the end of May becomes more likely. However, a convincing breakout above the triangle's resistance line, situated around $2.18, could invalidate this bearish scenario and open the door to a potential rally towards the psychological level of $3.00. Investors and traders should closely monitor these critical levels to anticipate the next direction of the XRP price.