XRP's price remains within a $2.05–$2.33 range for the month. The decreasing network activity and open interest in XRP suggest possible downward trends.
Declining XRP Network Activity
The XRP Ledger has seen a significant drop in network activity over the past six months. According to Glassnode data, the number of new daily addresses is significantly below the peak of 15,823 addresses on January 16. Only 3,500 new addresses were created on Thursday.
Additionally, the number of daily active addresses (DAAs) sharply dropped to 34,360 on Thursday from a three-month high of 577,000, indicating reduced interest in XRP.
Decreasing Open Interest in XRP
The recent decrease in XRP's open interest has dropped 30%, falling from $5.53 billion to $3.89 billion, indicating investors are closing positions in anticipation of lower prices. Historically, significant decreases in open interest have preceded declines in XRP prices.
Technical Analysis of XRP Prices
Data shows that XRP’s price is stuck below a key resistance zone between $2.22 and $2.40. Without support from bulls, the price may remain range-bound for a few more weeks. Analysis indicates a potential drop to $1.20 if the support at $2.00 is lost. Current RSI conditions also suggest increasing bearish momentum.
The current drop in activity and open interest in XRP, along with the technical analysis of prices, presents risks for further declines. Nevertheless, prolonged consolidation may lay the groundwork for future growth.
