XRP is under pressure, dropping nearly 6% in the past 24 hours and hovering just above $2 as downward momentum increases. The unlocking of $1.02 billion from Ripple's escrow fund has raised new concerns about supply exceeding demand, with tokens transferred to active wallets potentially ready for distribution.
Meanwhile, network activity has decreased by 87% since mid-March, and technical indicators like DMI and EMA lines suggest increasing downward price risks. With weakening trend strength and diminishing demand, XRP may struggle to maintain important support levels unless a catalyst restores bullish sentiment.
Ripple Wallet Activity Raises Concerns
On-chain data shows Ripple has unlocked 500 million XRP—valued around $1.02 billion—from its escrow account.
The tokens have been transferred from the escrow address "Ripple (27)" to two active wallets, "Ripple (12)" and "Ripple (13)," potentially preparing for distribution or sale.
Although the escrow account still holds another 500 million XRP, moving such a large amount to accessible wallets often raises concerns about market supply increase. If Ripple sells part of these tokens, it could create short-term selling pressure on XRP's price.
XRP DMI. Source: TradingView.From a technical perspective, XRP's DMI chart is sending a bearish signal. ADX, which measures trend strength, has sharply dropped to 26.68 from 42.45 just two days ago, indicating the recent trend is weakening.
Meanwhile, +DI has decreased to 12.91, from 22 yesterday—showing a decline in price increase momentum. Simultaneously, -DI has surged to 27.43 from 15.64, indicating increasing downward price pressure.
This shift in trend strength, combined with the token unlocking, suggests XRP may face further price decline unless new demand quickly absorbs the new supply.
XRP Network Activity Drops 87%
XRP's network activity spiked to a record high in March, with 7-day active addresses reaching an all-time high of 1.22 million on March 18.
However, that momentum quickly faded, with the current number dropping to just 158,000—an 87% decrease in less than three weeks.
This significant reversal indicates that the recent increase in participation may be short-term or event-driven rather than a sign of sustainable adoption or growing user demand.
7-Day XRP Active Addresses. Source: Santiment.Tracking 7-day active addresses is an important on-chain indicator providing insights into a token's network usage frequency. High activity can signal strong user interest and utility, often correlating with price support or increase.
Conversely, a significant drop in active addresses—as XRP is experiencing—can signal declining demand, reduced network usage, and potential selling pressure.
With such a strong activity decline, XRP's price may struggle to find appreciation unless new catalysts reignite user participation.
XRP Faces Strong Downtrend, But Could Recover If Breaking Key Levels
XRP's EMA structure clearly reflects an ongoing strong downtrend, with short-term moving averages below long-term ones and a wide gap between them—signaling persistent downward price momentum.
Unless buyers intervene soon, XRP's price may be set to test support around $1.90, a level historically maintained.
XRP Price Analysis. Source: TradingView.A break below this level could cause the asset to continue dropping to $1.77.
However, if XRP can reverse its current trend and regain upward momentum, it might climb to challenge resistance at $2.06.
A successful breakout above that level could pave the way for a continued price increase to $2.22.
