The Dreadful Decline of XRP: Is $1.20 in Our Future? (Spoiler: It Could Be!)

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Key takeaways:

  • XRP forms a bearish descending triangle on the daily chart, risking a 45% drop to $1.20. Oh dear!

  • Declining daily active addresses signal reduced transaction activity and liquidity. How thrilling.

  • A breakout above $2.18 could invalidate the bearish pattern. But, let’s be honest, how likely is that?

Ah, XRP, the once-shining star of the crypto world, now finds itself in perilous waters. A bearish pattern has reared its ugly head on the daily chart, and to make matters worse, network activity is crumbling like a house of cards. How exciting, right?

The Dreaded Descending Triangle: 45% Downward Spiral, Anyone?

Since its late 2024 rally, the XRP price chart has been playing the role of a sad, descending triangle. It’s a shape as tragic as it sounds, with a flat support level and a downward-sloping resistance line. Surely, no good can come of this!

Now, we all know that a descending triangle after a strong uptrend is the perfect recipe for a bearish reversal. It’s like waiting for a car crash to happen, and guess what? It’s happening. When the price breaks below the flat support level (which seems inevitable), it could plummet by as much as the height of the triangle. Hope you packed your parachute!

The bulls, bless their hearts, are trying desperately to keep XRP above the 50-day simple moving average (SMA), which currently sits at $2.18. But let’s face it – they’re losing the battle. If this trend continues, we might see XRP sink below this and the 100-day SMA at $2.06, heading straight for the psychological support level at $2.00. Can we get a round of applause for XRP’s potential demise?

If that support level fails, brace yourselves: XRP could tumble down to the $1.20 target by May’s end, marking a 45% drop from where it is now. Yes, you read that right. A full-on disaster!

Remember when we warned about a possible decline to $1.61 if key support levels didn’t hold? Well, that’s looking more likely by the minute. Let’s all hold hands and pray.

But wait, there’s hope! If XRP somehow manages to break above the resistance line at $2.18, it could invalidate the entire bearish setup. Who knows? Maybe it will rocket to $3.00. But don’t get your hopes up too high, it’s not looking promising.

Declining Network Activity: A Sign of the Times

And now, for the cherry on top: XRP’s network activity has dropped significantly. It’s like the whole world has collectively lost interest in XRP. According to Glassnode, the daily active addresses (DAAs) have plummeted compared to Q1 2025. It’s as if everyone packed up and left for more exciting cryptocurrencies. How quaint.

Back on March 19, XRP’s ledger had 608,000 DAAs, which was a decent showing of user engagement and transaction activity. But fast forward to April and May, and we’re looking at a mere 30,000 DAAs. Someone, please call a doctor – XRP’s network is in critical condition!

With such a sharp drop in transactions, it’s no surprise that interest (and confidence) in XRP is waning. As history teaches us, less network activity typically leads to price stagnation or drops. A thrilling future awaits, doesn’t it?

In a fun twist of fate, while XRP’s price drops 1.17% in the last 24 hours, trading volume has surged by 30%, reaching $2 billion. It’s almost as if traders are cashing out, waiting for the next big move. A bit of profit-taking? Or maybe they just love a good rollercoaster ride?

Popular analyst Dom chimed in, noting that “a large amount of market selling over the last week” is why XRP couldn’t sustain any upward movement. Well, at least we know it wasn’t due to the power of positive thinking!

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2025-05-05 15:15