tl;dr
XRP is facing downward pressure, down almost 6% in the last 24 hours and hovering just above $2, with concerns arising from a $1.02 billion unlock from Ripple's escrow account. The movement of tokens to operational wallets has sparked fears of oversupply and potential distribution or sale, while net...
XRP is facing downward pressure, down almost 6% in the last 24 hours and hovering just above $2, with concerns arising from a $1.02 billion unlock from Ripple's escrow account. The movement of tokens to operational wallets has sparked fears of oversupply and potential distribution or sale, while network activity has dropped by 87% since mid-March. Technical indicators indicate growing downside risk, suggesting XRP may struggle to maintain key support levels unless a catalyst revitalizes bullish sentiment. The EMA structure reflects a strong downtrend, with short-term moving averages positioned below long-term ones. If bulls do not intervene soon, XRP's price may test support around $1.90 or even drop to $1.77.
XRP is under pressure, down nearly 6% in the past 24 hours and teetering just above the $2 mark as bearish momentum builds. A $1.02 billion unlock from Ripple’s escrow has sparked fresh concerns about oversupply, with tokens moved to operational wallets possibly poised for distribution. At the same time, network activity has collapsed 87% since mid-March and technical indicators like DMI and EMA lines suggest growing downside risk. With weakening trend strength and fading demand, XRP may struggle to hold key support levels unless a catalyst revives bullish sentiment.
Onchain data shows that Ripple has unlocked 500 million XRP—worth around $1.02 billion—from its escrow account. The tokens were moved from the “Ripple (27)” escrow address to two operational wallets, “Ripple (12)” and “Ripple (13),” potentially positioning them for distribution or sale. While the escrow account still holds another 500 million XRP, the movement of such a large amount into accessible wallets often raises concerns about increased market supply. If Ripple sells a portion of these tokens, it could create short-term selling pressure on XRP’s price.
From a technical standpoint, XRP’s DMI chart is flashing bearish signals. The ADX, which measures trend strength, has sharply declined, suggesting the recent trend is weakening. Meanwhile, the DI has dropped, indicating a decline in bullish momentum, while the -DI has surged, pointing to rising bearish pressure. This shift in directional strength, combined with the large token unlock, suggests XRP may face further downside unless demand quickly absorbs the incoming supply.
XRP’s network activity surged to record highs in March, with 7-day active addresses reaching an all-time peak. However, that momentum quickly faded, with the number now plummeting to just 158,000—an 87% drop in less than three weeks. This reversal suggests that the recent spike in engagement may have been short-lived or event-driven rather than indicative of sustained adoption or growing user demand. High activity can signal strong user interest and utility, often aligning with price support or rallies. On the other hand, sharp declines in active addresses—like what XRP is now experiencing—can signal waning demand, decreasing network usage, and potential selling pressure.
XRP’s EMA structure clearly reflects a strong ongoing downtrend, with short-term moving averages positioned well below the long-term ones and a wide gap between them—signaling persistent bearish momentum. Unless bulls step in soon, XRP price may be on track to test support around $1.90, a key level that has held in the past. A break below it could expose the asset to further downside toward $1.77. However, if XRP manages to reverse the current trend and regain upward momentum, it could climb to challenge resistance at $2.06 and potentially rally toward $2.22.