Tuesday, January, 21, 2025

XRP Faces Major Setback: Active Addresses Drop 26% – What’s Behind the Decline?

XRP’s active addresses drop by 26%, signaling user engagement struggles and market challenges.
XRP
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Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.
  • XRP’s active addresses plummet 26% – what’s driving the decline?
  • XRP faces user engagement challenges amid ongoing market volatility.
  • XRP’s price holds steady despite 26% drop in active addresses.

XRP’s network activity has hit a significant hurdle, with active addresses plunging by 26% in just one week. Data from Ali Charts indicates that active addresses have fallen to 40,778, down from 55,080, a negative development for user participation. This drastic decline raises questions about the factors behind the diminished activity in the XRP ecosystem.

This is evident in the 26% decline in active addresses, an indicator of broader changes in the cryptocurrency market, where trends tend to shift quickly. This is not an isolated case: XRP faces challenges maintaining a steady user base, and the trend is observable across a wide range of digital assets. This plummeting in active addresses can signal investor sentiment, market volatility, and regulatory uncertainty on clarity Act. The recent price cycles of XRP may also be a factor, since price fluctuations change how users use the network.

Also Read: XRP’s Gravestone Doji Signals 46% Crash: Is History About to Repeat Itself?

Curiously enough, this decline in network activity does not concern only XRP. Numerous other cryptocurrencies are experiencing the same decrease in activity, which might indicate that the market is passing through a period of uncertainty. Investor confidence is often weaker during such periods, and consequently, cryptocurrencies usually experience declines in trading volume.

XRP’s Price Struggles and Potential for Recovery

Although the number of active addresses has been decreasing, the price of XRP has remained at $1.49546. Buy XRP near the upper end of its Bollinger Bands, as it has some upside potential, though it’s still in a tight consolidation. The given stance indicates that XRP could see a temporary rise once it breaks out of this range.

Also, the Relative Strength Index (RSI) for XRP is 53.78, indicating a neutral market attitude. This implies that the asset cannot be overbought or oversold, as it has room to move in both directions. Another important indicator that may dictate the next step for XRP is the 20-day Simple Moving Average (SMA). The fact that the price will either shoot higher or plunge below this level will probably determine the immediate price action of XRP.

XRP is still central to the cross-border payments industry, although its capability to withstand the storm of reduced network activity will be critical to its future. The days ahead are going to be quite indicative, with XRP trying to stay relevant amid current market problems.

Also Read: Bitcoin OG Moves $543M in ETH to Binance as Ethereum Wobbles

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