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crypto.news 2025-05-06 04:57:30

XRP struggles within a tight range as network activity hits multi-month lows

XRP remains range-bound, trading between $2.03 and $2.30 for much of the past month. Despite initial momentum, price action has leveled off after failing to break out of this corridor in March. XRP ( XRP ) is currently trading at about $2.14, down 1.2% over the last day and more than 8% over the previous week. On-chain activity shows a similar picture to the stalling of price movement. According to Santiment data , the number of daily active addresses on the XRP Ledger has significantly dropped, averaging roughly 40,000, the lowest since November 2024. This is a huge drop from March, when daily activity consistently hovered around 300,000 and peaked at over 612,000 on March 19. XRP price and daily addresses. Credit: Santiment Additionally, the number of large transactions exceeding $100,000 has dropped, from over 1,500 at the peak in March to roughly 1,000 per day. Despite dwindling usage, development activity appears to be increasing. The last 30 days saw a 196% increase in developer contributions to XRPL, indicating that protocols and updates are on the horizon. You might also like: XRP at a crossroads: will $2 hold or crumble? On May 5 alone, two protocols, the tokenized index fund Vaultro Finance and the decentralized lending protocol XpFinance, announced their debut on XRPL. These developments, alongside Ripple’s acquisition of prime broker Hidden Road, could re-ignite interest over the coming months. On the technical side, XRP remains in a neutral-to-bearish posture. The relative strength index is at 44.7, leaning in the neutral zone while the stochastic RSI suggests that XRP is oversold. The moving average convergence divergence indicator points to a short-term downward trend. XRP price analysis. Credit: crypto.news All of the short- to mid-term moving averages are trending lower and are giving off a “sell” signal. Only the 200-day estimated moving average, which is currently trading at $1.99, is providing some support. A deeper correction toward the 200-day average or even lower may be possible if XRP breaks below $2.03 with significant volume, particularly if on-chain activity stays weak. However, a clean move above $2.30 might lead to a breakout in the direction of the next significant resistance level, which is close to $2.45. XRP appears to be in a holding pattern at the moment. Low user activity and a decline in transaction volume may hurt sentiment, despite the Securities and Exchange Commission’s legal pressure having eased and new developments growing. The next few weeks may be crucial, especially if the network gains momentum from impending launches. Read more: A look into XRP stability and cloud mining potential

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