#XRPPredictions $XRP
XRP Faces Market Uncertainty as On-Chain Metrics Signal Potential Top
By Yashu Gola | Cointelegraph | May 2025
XRP may be nearing a market top, as fresh on-chain data and technical analysis reveal signs of a weakening rally and increasing downside risk. After surging over 385% since late 2024, recent indicators suggest that XRP could face a significant correction in the near term.
Realized Cap Data Signals a Market Peak
According to data from Glassnode, more than 70% of XRP’s realized market capitalization—a metric that tracks the value of tokens based on their last movement—has been accumulated between late 2024 and early 2025. This clustering of capital near recent price highs is historically consistent with previous market tops, raising concerns that XRP may be due for a pullback.
Crypto analytics account @CryptoVizArt noted that over 70% of capital locked in XRP was deployed near the top in the last six months, underscoring the possibility of exhausted upward momentum.
Declining Network Activity
One of the most striking red flags comes from XRP's network activity. The number of active addresses on the XRP Ledger has plummeted by more than 90% since March 2025. This dramatic drop in active users indicates a steep decline in transactional demand, which could put further pressure on price stability.
Technical Analysis Shows Bearish Pattern
Chart patterns reveal a potential falling wedge formation, typically a bearish signal in the short term. If the pattern plays out, XRP could drop by as much as 25%, targeting a key support level around $1.76.
Despite the current price hovering near $2.33, analysts warn that the strong rally may have lured buyers at vulnerable levels. The convergence of weakening fundamentals and technical resistance suggests XRP could struggle to maintain its recent gains.