XRP Price Prediction: Potential 45% Drop to $1.20?

Key Takeaways:

• Bearish descending triangle pattern on XRP’s daily chart suggests a potential 45% price drop to $1.20.
• Decreasing daily active addresses indicate reduced network activity and liquidity.
• A breakout above $2.18 could negate the bearish prediction.

Recent XRP price action displays concerning signs, with a bearish technical pattern forming on its daily chart alongside declining network activity. Let’s delve into the details.

XRP’s Descending Triangle: A Bearish Signal?

Since its late 2024 rally, XRP has been forming a descending triangle pattern on its daily chart. This pattern, characterized by a flat support and a downward-sloping resistance line, is often viewed as a bearish reversal indicator, particularly after a strong uptrend. Typically, the price breaks below the flat support, falling by the triangle’s maximum height.

The inability of buyers to maintain XRP above its 50-day simple moving average (SMA), currently at $2.18, highlights a lack of buying pressure. A drop below the 50-day and 100-day SMAs ($2.06) could push XRP towards the $2.00 psychological support level. Failure at this level could trigger a decline towards the $1.20 target, representing a 45% drop from current levels.

This potential decline aligns with previous analyses predicting a fall to $1.61 if key support levels failed to hold. However, a decisive break above the $2.18 resistance line would invalidate this bearish pattern, opening the path for a potential rally towards $3.00.

Weakening XRP Network Activity

A significant decrease in XRP Ledger network activity compared to Q1 2025 is noteworthy. Data from Glassnode reveals a considerable drop in daily active addresses (DAAs) since March’s peak of 608,000. The current figure of approximately 30,000 DAAs signals reduced user engagement and transaction volume. This reduced activity often precedes price stagnation or declines, due to decreased liquidity and buying pressure.

Despite a 1.17% drop in the last 24 hours, daily trading volume has surged by 30% to $2 billion. This increase in volume during a price decline might suggest profit-taking or repositioning by traders.

Analyst Dom noted significant market selling in recent weeks, contributing to XRP’s inability to sustain upward momentum.

Disclaimer: This analysis is not financial advice. Conduct thorough research before making investment decisions.