Summary:
XRP’s inability to maintain the $3 level suggests a persistent risk of a decline towards $2.40-$2.
Large investors continue to liquidate their XRP holdings.
Falling daily active addresses indicate a decrease in transaction volume and liquidity.
The price of XRP (XRP) is showing concerning signals beneath $3 as bearish patterns are evident on the daily chart, along with selling pressure from large investors and a drop in network activity.
XRP price charts indicate potential further decline
XRP has been creating a descending triangle pattern on its daily chart since peaking at $3.66, marked by a flat support level and a downward-sloping resistance line.
A recent break above the triangle’s upper trendline was a false signal, as bulls failed to maintain prices above $3, indicating weak momentum.
Related: XRP reserves increased by 1.2B in a day: Accumulation or sell-off?
Thus, if XRP cannot recapture the $3 mark soon, where the 50-day SMA is located, it could drop to the next support level at $2.70.
The following critical levels include the 200-day SMA at $2.5 and the downside target of the triangle around $2.06, representing a potential 31% drop from current levels.
Additionally, the analysis of XRP’s descending triangle is further corroborated by a bear flag on the same timeframe, suggesting a potential drop to as low as $2.40 after breaching the $3 support.
As reported by Cointelegraph, should the price reclaim the $3 mark, buyers are likely to attempt to push XRP above the flag’s upper boundary at $3.20. Achieving this could lead to a price increase to $3.40 and eventually $3.66.
Whale activity indicates profit-taking at $3
Onchain data reveals that large investors capitalized on profits during the recent rise to $3.10.
The Supply Distribution metric indicates a notable decrease in holdings by entities with a balance of 1–10 million XRP, which now account for 6.79 billion XRP, reaching a six-week low.
The chart below illustrates that these whales have sold over 160 million XRP tokens valued at approximately $476 million based on current prices in the past two weeks.
This suggests that large investors are likely expecting lower prices ahead, even amid anticipated spot ETF approvals and Federal Reserve rate cuts.
Additionally, a significant spike in XRP reserves on exchanges contributes to market challenges, according to data from Glassnode.
The subsequent chart shows an increase in the XRP balance on exchanges by 665 million tokens, rising to 3.94 billion from 3.3 billion on August 27, thus heightening the available supply for selling.
Decreased activity on the XRP Ledger
The XRP Ledger has experienced a notable decline in activity over the last two months. Onchain data from CryptoQuant indicates that daily active addresses (DAAs) have fallen significantly from the peak of 50,482 DAAs on July 18.
Currently, there are around 21,000 daily active addresses, reflecting a substantial decrease in user transactions, possibly indicating diminished interest or confidence in XRP’s short-term prospects.
Moreover, new addresses have dropped from a high of 11,000 daily in 2025 to the current 4,300, suggesting waning network adoption and user interaction.
Historically, a decline in network activity often presages price stagnation or declines, as lower transaction volumes can impede liquidity and buying momentum.
This article does not provide investment advice or recommendations. Every trading or investment decision carries risks, and readers are encouraged to conduct their own research.
