Coin Bureau, a renowned crypto educational and media platform, recently shed light on some concerning trends observed in the XRP market, which could potentially signal an extended bearish phase. The altcoin has been in the spotlight due to the overall crypto market correction over the past month, during which XRP prices have seen over a 10% dip and currently hover around the $2.13 mark.
Although many in the crypto sphere are optimistic for a market rebound, Coin Bureau’s recent findings suggest that the on-chain data might tell a different story.
Analysts See Unlikely $3 XRP Target Amidst Decreasing Network Activity
In a post published on June 20, Coin Bureau pointed out that XRP’s path to reclaiming its bullish stance seems arduous due to dwindling network engagement. Specifically, Glassnode data reveals a significant drop in new wallet creations on the XRP Ledger, from over 30,000 daily in January to currently under 5,000 daily.
Interestingly, Glassnode charts show a strong correlation between price movements and network growth. The late Q4 2024 spike in wallet creation coincided with a sharp price rise, pushing XRP to a high of $2.71. However, as the influx of new users began to wane, XRP’s price followed suit, entering a period of consolidation and gradual decline.
In addition to these observations, Coin Bureau also underscores the dramatic fall in XRP’s daily active addresses, from 557,000 to just 34,000, hinting at dwindling retail investor interest in the XRP ecosystem. According to market analysts, this sharp decrease in network engagement suggests that XRP might not have enough market demand to support a bullish climb towards the crucial $3 resistance zone.
However, another theory proposes that the previous network activity highs seen in Q4 2024 and January were associated with widespread market euphoria following the US general elections. This theory argues that the decline is a part of social trends and is overstated by Coin Bureau.
XRP’s Price Outlook
At the moment, XRP is trading at $2.13, reflecting a 1.33% decrease in the past day. Meanwhile, the asset’s daily trading volume has risen by 22.29%, reaching a value of $2.25 billion. Based on data from prediction site CoinCodex, investors remain largely bearish towards XRP, although the Fear & Greed Index is neutral at 54.
CoinCodex analysts anticipate that XRP will remain in consolidation in the short term, with a projected value of $2.12 in a month. However, they predict a slow but steady long-term bullish recovery, with estimates of $2.45 in three months and $3.03 in six months.
