XRP Faces Heavy Selling Pressure as Network Activity Drops, Down Over 12% in a Week
XRP is facing significant downward pressure, with the cryptocurrency shedding more than 12% of its value over the past week. The price has fallen over 5% in the last 24 hours, a reflection of a broad bearish sentiment that is gaining strength in the market. This downturn is accompanied by technical indicators that suggest further declines could be on the horizon unless a shift in sentiment occurs soon.
Bearish Technical Indicators Point to Further Declines
XRP’s Directional Movement Index (DMI) is signaling a strong bearish trend. The Average Directional Index (ADX) has surged from 25.43 to 47.14 in just one day, indicating that the current trend is gaining momentum. A value above 40, as seen in XRP’s case, is a clear sign of a powerful trend—this time, one moving downward.
Breaking down the DMI further, the +DI (which measures upward price momentum) has dropped sharply from 20.13 to 5.76, while the -DI (which tracks downward pressure) has risen significantly from 8.97 to 33.77. This divergence suggests that sellers are firmly in control, and buying pressure is rapidly fading, adding to the bearish outlook.
Unless a significant shift occurs, XRP’s price may continue to face downward pressure in the short term.
XRP's Network Engagement Sees Sharp Decline
In addition to weakening price momentum, XRP’s network activity has also taken a hit. The number of active addresses on the XRP network has dropped dramatically over the past week. On March 19, active addresses peaked at 1.22 million, signaling strong network engagement. However, by the end of the week, this figure plummeted to just 331,000—a drop of over 70%.
This steep decline in active addresses indicates a sharp decrease in user engagement and transaction activity on the network. Lower network participation is often a sign of waning interest from investors and users, which could contribute to further selling pressure on the price.
Price Outlook: Can XRP Hold Key Support Levels?
XRP’s Exponential Moving Average (EMA) lines are also reflecting a bearish trend, with short-term EMAs positioned below longer-term EMAs—another classic signal of downward momentum. If this trend persists, XRP could soon test critical support levels, with the $1.90 mark being the next major point of interest. A break below this level could open the door to a deeper decline, potentially down to $1.77 in the coming weeks.
However, all is not lost for XRP. If market sentiment turns around and the cryptocurrency manages to regain momentum, the first level to watch for resistance is $2.22. A successful breakout above this resistance could trigger a bullish reversal, potentially pushing XRP’s price up toward $2.47 and even $2.59 if the rally continues.