XRP is facing potential bearish trends as per the daily chart, which could drive its price down by almost 45%, to $1.20. This negative outlook is further emphasized by a reduction in daily active addresses, indicating less transaction activity and liquidity. However, if XRP manages to break out above $2.18, the bearish pattern could be negated.
The XRP price chart has been displaying a descending triangle pattern since the late 2024 rally. This pattern, characterized by a flat support level and a downward-sloping resistance line, is typically seen as a bearish reversal indicator after a strong uptrend. The pattern usually resolves with the price falling as much as the triangle’s maximum height once it breaks below the flat support level.
Despite the bulls’ efforts to keep XRP above the 50-day simple moving average (SMA), currently at $2.18, signals of weakness are evident. If the trend persists, a closure below the 50-day SMA and the 100-day SMA at $2.06 could plunge the XRPUSDT pair to the psychological support level at $2.00. Should this support fail, XRP’s price could tumble to around $1.20 by the end of May, marking a 45% decrease from current price levels.
However, a clear breakout above the triangle’s resistance line at $2.18 could invalidate the bearish pattern, setting XRP up for a potential rally towards the $3.00 mark.
Furthermore, the XRP Ledger has noted a significant reduction in network activity compared to Q1 2025. Glassnode’s on-chain data reveals that the network’s daily active addresses are now significantly lower than the peak in March. A decrease in network activity often precedes price stagnation or drops, as reduced transaction volume lessens liquidity and buying pressure.
XRP’s 1.17% drop over the last 24 hours is paired with a 30% rise in daily trading volume, reaching $2 billion. Increased trading volume amidst a price decline could indicate profit-taking or repositioning by crypto traders as they wait for XRP’s next move.
Please note that this article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
