Main points:
XRP’s inability to maintain the $3 level indicates a potential drop to $2.40-$2.00.
Whales are continuing to liquidate their XRP holdings.
A decline in daily active addresses indicates dwindling transaction activity and liquidity.
The price of XRP (XRP) shows troubling signs below $3, as bearish patterns develop on its daily chart, aligning with whale selling and a drop in network activity.
XRP price charts suggest further decline
XRP has been creating a descending triangle pattern on its daily chart since reaching a multi-year high of $3.66, marked by a flat support line and a sloping resistance line.
The recent breakout above the triangle’s upper trendline turned out to be false as bulls struggled to maintain the price above $3, indicating weakness.
Related: XRP reserves increased by 1.2B in one day: Accumulation or signs of a sell-off?
Thus, if $3 cannot be reclaimed quickly—where the 50-day SMA is located—the XRP/USDT pair could plunge to the next support at $2.70.
Lower down, the levels to watch include the 200-day SMA at $2.50 and later, the triangle’s downside target around $2.06, a 31% drop from current price levels.
Additionally, the descending triangle analysis is complemented by a bear flag on the same timeframe, indicating a potential drop to $2.40 after losing support at $3.
According to Cointelegraph, should the price reclaim $3, buyers will attempt to sustain the uptrend by pushing XRP above the flag’s upper boundary at $3.20. Success could lead to a rally towards $3.40 and eventually to $3.66.
Whales selling XRP around $3
Onchain data reveals large investors took profits during the recent rally to $3.10.
The Supply Distribution metric indicates a sharp decline in holdings by entities with 1–10 million balances. Currently, these addresses control 6.79 billion XRP, marking a six-week low.
The chart below illustrates that these whales have sold over 160 million XRP tokens, valued at over $476 million based on current prices, in the last two weeks.
This suggests that big investors are likely anticipating further price declines, despite upcoming spot ETF approvals and expected Fed rate cuts.
In the meantime, a significant increase in XRP exchange reserves adds to the challenges, as revealed by data from Glassnode.
The chart below indicates that the XRP balance on exchanges grew by 665 million tokens to 3.94 billion on Monday, up from 3.3 billion on August 27, thereby increasing the supply available for sale.
Decreasing XRP Ledger network activity
The XRP Ledger has experienced a notable decrease in network activity over the past two months. Onchain data from CryptoQuant shows that daily active addresses (DAAs) are significantly below the July 18 peak of 50,482 DAAs.
With roughly 21,000 daily active addresses at the moment, user transactions have greatly declined, which may indicate diminished interest or confidence in XRP’s upcoming outlook.
Additionally, new addresses have decreased from a 2025 high of 11,000 daily to the current count of 4,300 over the same timeframe, indicating a decline in network adoption and user engagement.
Historically, drops in network activity often signal impending price stagnation or declines, as diminished transaction volume leads to lower liquidity and buying momentum.
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and readers are encouraged to perform their own research before making decisions.
