Ripple’s XRP is losing ground against leading coin Bitcoin, with the XRP/BTC trading pair slipping to its lowest point in three months.
This downward trend comes amid BTC’s recent rally, which pushed it to a new all-time high of $111,888 earlier today, widening the performance gap. With lingering bearish sentiment, XRP risks reversing recent gains and resuming its decline.
XRP/BTC Pair Hits New Low Amid Weak Network Activity
As of this writing, the XRP/BTC trading pair is at 0.000021 BTC, plunging 29% since it began its downward trend on March 2.
XRP/BTC Trading Pair. Source: TradingView
When the XRP/BTC pair drops like this, XRP is underperforming relative to BTC. This indicates a loss of investor confidence, leading to a relative outflow from XRP into BTC.
It also reflects bearish sentiment toward XRP in the current market, especially as it faces weak network activity. Despite its 4% price surge, the token’s Price Daily Active Addresses (DAA) Divergence remains negative, indicating weak demand behind the rally. As of this writing, it is at -58.2%.
XRP Price DAA Divergence. Source: Santiment
This on-chain metric compares an asset’s price movement with its network activity by analyzing the relationship between price trends and the number of unique addresses interacting with the blockchain daily.
When price rallies are not matched by a corresponding rise in daily active addresses, it signals speculative buying.
Conversely, strong DAA growth alongside price gains suggests healthy network usage and more sustainable market momentum.
Therefore, XRP’s negative Price-DAA divergence signals that its recent price gains are not backed by increased user activity on the XRP Ledger. In other words, the rally lacks strong network demand, suggesting the momentum may be unsustainable.
XRP Hovers at $2.43 as Demand Cools
At press time, XRP trades at $2.42. With waning underlying demand for the fourth-largest crypto by market capitalization, the token is poised to lose some of its recent gains. In this scenario, XRP could fall to $2.29.
If this level fails, the altcoin could extend its decline to $2.11.
XRP Price Analysis. Source: TradingView
On the other hand, a resurgence in new demand could drive XRP above $2.50.
