The post Why Is XRP Price Crashing? Here’s What Dragging Ripple Price Down! appeared first on Coinpedia Fintech News
The XRP price is under heavy pressure once again, leaving traders and long-term holders on edge. The latest trigger? A fresh twist in the Ripple vs. SEC lawsuit. This week, Judge Torres rejected a joint motion to settle penalties over Ripple’s alleged securities violations, throwing a wrench into what many hoped was the final chapter. The ruling rekindled legal uncertainty, spooking investors and sending XRP tumbling below key support levels amid already fragile market sentiment.
Ripple’s native token, XRP, has taken a hit, plunging below critical support. While the other cryptos are trying to rise above the bearish trend, the XRP price has started the day’s trade on a bearish note after a bearish close.
XRP Ledger Activity Collapsed
Not only the legal pressure, but the on-chain metrics are also concerning. The latest data shows a major drop in the trading activity, which could be a result of sluggish behavior of the price, followed by uncertain market conditions and global tensions. According to data from Cryptoquant, the daily active addresses have dropped heavily.
The trading activity has surged and marked highs, which has assisted the XRP price to rise above $2 for the first time since the 2018 rally. Since then, the price has remained consolidated above $2 while the active addresses continued to plunge, reaching the lower limits. On the other hand, the daily payments on the XRP ledger have also dropped by nearly 70% this month. In the crypto space, lower network activity means there is less global demand. Whether it’s fewer transfers, fewer DeFi interactions, or less developer interest.
So, Is XRP Dead? Will the Price Drop Below $2?
After a massive rise in November 2024, the price began to trade within a descending parallel channel. It appeared to be a bull flag, but the pennant is extending, indicating a continuation of a consolidation. Besides, the drop in volume also substantiates the bearish trend, which goes in line with the drop in the on-chain readings.
Regardless of the drop in the on-chain readings and the uncertainty around the token, the technicals suggest the token is trying to rise above the bearish influence. It has reached the edge of the descending triangle while the RSI is attempting to rise above the descending trend line. On the other hand, the CMF remains stuck within the positive range and is displaying a bullish divergence. This suggests the XRP price is primed for a recovery, but if it fails to hold above the support zone, a pullback to $1.62 is imminent.
