Robox News
13
May 26, 2025
Crypto
After a staggering rally of more than 385% since late 2024, XRP is showing signs of possible exhaustion. Analysts warn that the token’s recent momentum could be short-lived, with emerging signals suggesting a substantial downside correction.
Over 70% of XRP’s realized market cap has been built during the recent price surge. This kind of concentration—where new investors dominate the market—has historically led to heightened sensitivity and sharper sell-offs during corrections. Similar patterns in 2017 and 2021 preceded major declines of 95% and 80%, respectively, pointing to the possibility that XRP may have already peaked around the $3.40 level in January 2025.
In another warning sign, XRP’s active address count has plunged over 90% since its March 2025 peak. While prices have remained elevated, this steep decline in network usage suggests that fewer users are transacting with the asset. Past cycles show that when user activity diverges from price action, a correction often follows.
What Falling On-Chain Activity Means for XRP
This pattern suggests a shift from transactional use to passive holding, reducing organic demand and weakening long-term support. Without a strong user base actively interacting with the blockchain, price rallies become more vulnerable to abrupt reversals.
XRP is currently forming a falling wedge pattern on the weekly chart. After failing to break above the wedge's upper boundary, the price appears to be entering a consolidation phase that may result in further downside movement.
Key Support Level to Watch: $1.76
A deeper correction could drive XRP down toward the lower trendline of the wedge, which aligns with the 50-week exponential moving average near $1.76. This would represent an estimated 25% decline from current price levels and could be a critical support zone to monitor.
Interested in more crypto trend analysis? Check out this related article that dives deeper into market behavior.