Key takeaways:
The inability of XRP to maintain above $3 indicates a potential decline to $2.40-$2.00.
Whales are actively offloading XRP.
A decrease in daily active addresses suggests lower transaction activity and liquidity.
XRP (XRP) price illustrates warning signals beneath $3 as bearish technical patterns appear on its daily chart, coinciding with whale selling and diminishing network activity.
XRP price charts suggest further downside
XRP’s price has been forming a descending triangle pattern on its daily chart since it peaked at $3.66, featuring a stable support level and a descending resistance line.
The recent breakout above the triangle’s upper trendline proved to be false as buyers struggled to maintain the price above $3, indicating weakness.
Related: XRP reserves surged by 1.2B in a day: Is it accumulation or signs of a sell-off?
Thus, failing to reclaim $3 soon, where the 50-day SMA rests, could push the XRP/USDT pair down to the next support at $2.70.
Further down, the next levels to monitor are the 200-day SMA at $2.50 and eventually, the downside target of the triangle around $2.06, about 31% lower than current pricing.
Moreover, XRP’s descending triangle analysis is paired with a bear flag on the same timeframe, signaling a potential drop to as low as $2.40 following the loss of support at $3.
As reported by Cointelegraph, if the price reclaims $3, buyers will attempt to resume the uptrend by pushing XRP above the flag’s upper boundary at $3.20. If successful, XRP could rally to $3.40 and subsequently to $3.66.
Whales selling XRP at $3
Onchain data indicates that large investors realized profits on the latest rally to $3.10.
The Supply Distribution metric shows a significant decline in the supply held by entities with a 1–10 million balance. These addresses now possess 6.79 billion XRP, marking a six-week low.
The chart below indicates that these whales have offloaded more than 160 million XRP tokens valued at over $476 million at current prices in the last two weeks.
This highlights that major investors likely anticipate lower prices despite upcoming spot ETF approvals and Fed rate cuts.
Meanwhile, a notable increase in XRP exchange reserves adds to the challenges, as data from Glassnode shows.
The chart below reveals that XRP balance on exchanges rose by 665 million tokens to 3.94 billion on Monday from 3.3 billion on Aug. 27, increasing the selling supply.
Declining XRP Ledger network activity
The XRP Ledger has experienced a marked decrease in network activity over the past two months. Onchain data from CryptoQuant shows that the daily active addresses (DAAs) have significantly dropped from the July 18 peak of 50,482 DAAs.
With around 21,000 daily active addresses currently, user transactions have plummeted, potentially indicating reduced interest or a lack of confidence in XRP’s short-term outlook.
Additionally, new addresses have decreased from a 2025 high of 11,000 daily to the current count of 4,300 during the same timeframe, suggesting declining network adoption and user engagement.
Historically, drops in network activity often indicate potential price stagnation or downturns, as reduced transaction volume affects liquidity and buying momentum.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
