The XRP price has dipped slightly in recent days, but the broader uptrend remains intact. After reaching a high of $2.65 earlier this week, the market appears to be recalibrating. Will XRP soon mount another attempt at the psychological $3 barrier?
XRP Price Analysis: Weakening Network Activity Sparks Caution
On Thursday, XRP dropped to $2.48 after peaking at $2.65. This mild pullback followed a solid rally from support around $2.12. Optimism across the broader crypto market—driven in part by positive geopolitical developments, including a U.S.-U.K. trade deal and a temporary trade truce with China—provided momentum.
Still, XRP’s technical picture is mixed. Active addresses on the XRP Ledger have plummeted from 16,000 in January to just 3,400 on May 7. This decline in network activity suggests lower demand and reduced user engagement. Analysts caution that this could weaken XRP’s medium-term bullish outlook.
Meanwhile, XRP derivatives are experiencing a rise in liquidations. More than $12 million in XRP positions were liquidated over the past 24 hours, with long positions bearing the brunt at $8.44 million versus $1.69 million in shorts. Open interest dropped by 6,90% to $5.25 billion, indicating that some traders are unwinding leveraged positions, either to take profits or limit exposure.
Technical Indicators Paint a Mixed Picture
On the daily chart, XRP remains above its key exponential moving averages (EMAs)—the 50-day, 100-day, and 200-day. These averages currently provide dynamic support at approximately $2.27, $2.25, and $2.00, respectively. These levels are critical if the price pulls back further.
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The Moving Average Convergence Divergence (MACD) indicator remains above the zero line and still flashes a buy signal. Green histogram bars show bullish momentum is intact. This suggests that a renewed push toward $3 remains a possibility.
However, the Relative Strength Index (RSI) is showing signs of weakness. Now at 63.34 and trending toward the neutral 50 zone, the RSI hints at declining buying pressure. If this trend continues, XRP may face further consolidation before any significant upward move.
Key Price Levels to Watch
Should the price decline further, several support levels may come into play. The first is the 50-day EMA at $2.27, followed by the 100-day EMA at $2.25 and the 200-day EMA at $2.00. A drop below $2.00 would seriously damage the bullish structure.
On the upside, $2.65 remains the first resistance level to beat. A strong breakout above this price could pave the way toward the key psychological target of $3.00—a level that has proven significant in past market cycles.
Outlook: Can XRP Regain Investor Confidence?
This XRP price analysis points to a tug-of-war between bullish optimism and bearish caution. Declining network activity and elevated liquidations signal that the market is entering a sensitive phase. Still, as long as the price stays above critical EMA support levels, the technical picture leans bullish.
Ripple continues to attract institutional interest, especially through the increasing use of its On-Demand Liquidity (ODL) solution for cross-border payments. This strong fundamental base could position XRP well if market sentiment improves.
Traders should closely monitor volume and RSI trends in the coming days. A breakout above $2.65 accompanied by a spike in volume would provide a compelling buy signal.
