The XRP price has declined 18% from its May peak of $2.65, and multiple technical and on-chain indicators are now aligning to suggest a further drop—potentially as deep as $1.70. With weakening momentum, bearish chart patterns, and declining network activity, investors are closely watching whether this altcoin can stabilize or if a deeper correction lies ahead.
The Inverted V Pattern: A Warning Sign for XRP
Between April 7 and June 2, XRP formed a clear inverted V pattern on the daily chart—a classic technical structure that often precedes significant downside movement after a sharp rally.
This upward surge began at a low of $1.61, propelling XRP to a 62% gain and peaking at $2.65. However, the rally stalled at a strong resistance zone where buying pressure dried up. Sellers stepped in, triggering a sharp reversal that erased much of the prior gains.
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The Relative Strength Index (RSI) on the daily timeframe reflects this shift in momentum. It has fallen steadily from 68 on May 12 to just 41, signaling growing bearish control. As the pattern nears completion, the next logical support level lies around $1.72—the "neckline" of the inverted V—representing approximately a 20% downside from current levels.
Technical analyst MasterAnanda on TradingView shares this bearish outlook. He notes that XRP has broken below its ascending channel, with three consecutive closes under the lower trendline—a strong signal of trend reversal.
"While a rebound in XRP/USDT may seem imminent, bearish momentum continues to build," the analyst commented. "The coin could extend losses toward the $1.72 support zone. The correction may not be over yet."
Such technical formations carry weight because they reflect collective trader psychology—initial optimism turning into profit-taking and eventual capitulation.
Bearish Divergence Confirms Loss of Momentum
Beyond the chart pattern, a more concerning signal is emerging from the weekly RSI: a pronounced bearish divergence.
From November 2024 to June 2025, XRP/USD prices moved higher, establishing higher lows—a hallmark of an uptrend. But during the same period, the weekly RSI dropped dramatically from 92 to 51, forming lower lows instead.
This disconnect between price and momentum is a red flag. It indicates that although prices rose, the underlying strength behind those moves weakened significantly. Fewer buyers were stepping in at higher levels, while sellers accumulated positions quietly.
Bearish divergence often precedes major corrections because it reveals exhaustion in the buying force. As profit-takers exit and new demand dries up, even minor selling pressure can trigger broader declines.
Additionally, the $2.50–$2.65 range has proven to be a formidable resistance zone. Repeated failure to break above this level suggests strong supply overhead, which could continue to cap gains in the coming weeks.
Declining On-Chain Activity Signals Weaker Demand
Technical patterns tell part of the story—but on-chain data reveals what’s happening beneath the surface.
According to Glassnode, XRP Ledger (XRPL) activity has plummeted over the past two months. The number of daily active addresses (DAAs)—a key measure of user engagement—has dropped sharply.
At its 2025 peak on March 19, DAAs reached 608,000. Today, that figure stands at just 31,200, indicating a dramatic slowdown in transactional use and overall network participation.
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Even more telling is the decline in newly created addresses. From a high of 15,800 new addresses per day during the market peak, this number has fallen to only 4,400—a drop of over 72%.
This sustained reduction in adoption signals waning interest and lower confidence in XRP’s short-term trajectory. When fewer users join the network and existing ones transact less frequently, it directly impacts demand for the asset.
Historically, prolonged drops in on-chain activity correlate with periods of price stagnation or decline. Lower transaction volume reduces liquidity and weakens buying pressure, making it easier for downward trends to accelerate.
What Does This Mean for XRP’s Future?
While past performance doesn’t guarantee future results, the confluence of technical breakdowns, weakening momentum, and shrinking network usage paints a cautious picture for XRP.
Key factors currently weighing on sentiment include:
- Completion of the inverted V pattern targeting $1.70–$1.72
- Weekly RSI bearish divergence indicating loss of bullish strength
- Sharp drop in daily active and new addresses
- Failure to sustain momentum above $2.50
That said, markets are dynamic. A resurgence in institutional interest, positive regulatory developments (especially around Ripple’s ongoing legal landscape), or broader crypto market recovery could reignite demand.
Until then, traders should remain alert to downside risks.
Frequently Asked Questions (FAQ)
Q: Why is XRP dropping despite previous gains?
A: XRP’s decline follows a sharp rally that exhausted buying momentum. Combined with bearish technical patterns and reduced on-chain activity, profit-taking has shifted control to sellers.
Q: Is $1.70 a guaranteed support level?
A: $1.70–$1.72 represents a technical target based on the inverted V pattern’s neckline and prior support zones. While not guaranteed, it's a level where buying interest may emerge if reached.
Q: Can XRP recover if network activity improves?
A: Yes. Sustained growth in daily active addresses and new users typically precedes price rallies. Increased utility—such as through Ripple’s payment solutions—could drive renewed adoption.
Q: How reliable is RSI divergence as a predictor?
A: Weekly RSI divergence is considered highly reliable in technical analysis, especially after extended rallies. It often warns of trend reversals before they become obvious on price charts.
Q: Should I sell XRP now due to these signals?
A: This article does not provide investment advice. Always conduct independent research and consider your risk tolerance before making trading decisions.
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Final Thoughts
XRP is navigating a critical phase marked by fading momentum and declining user engagement. The potential for a 20% drop to $1.70 is supported by both technical structure and fundamental network data.
For traders and investors alike, monitoring key levels like $1.72 and watching for signs of renewed on-chain vitality will be essential in determining whether this is a temporary correction—or the start of a longer-term downturn.
Core keywords: XRP price, XRP Ledger, RSI divergence, inverted V pattern, daily active addresses, on-chain data, XRP technical analysis, XRP support level
By understanding both market psychology and blockchain fundamentals, you can make more informed decisions—even in uncertain markets.