XRP is once again in deep consolidation, extending the range-bound pattern that has sustained the altcoin for several days.
Altcoins are attracting renewed attention from traders, but this interest has not yet translated into meaningful market participation or price expansion.
XRP investors withdraw
The number of active addresses on the XRP Ledger has declined sharply, dropping to 35,931. This is the lowest level in more than three months. This decline highlights waning investor engagement as users refrain from trading on the network. The lack of consistent activity reinforces the perception that XRP is struggling to generate momentum.
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This backward participation undermines the foundations needed for a sustainable recovery. When network activity drops this much, price increases often quickly lose momentum. This makes it difficult for XRP to build the demand needed to break out of its established range.
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New warning signs are flashing as the NVT ratio soars to a two-week high. An increase in NVT usually suggests that the asset is overvalued relative to trading volume. In the case of XRP, suppressed on-chain activity and rising valuation pressure form a bearish combination, complicating recovery prospects.
This imbalance indicates that investors may be pricing in optimism that is not supported by the network’s current fundamentals. Until trading activity increases, XRP may remain susceptible to corrections despite short-term speculative gains.
XRP price faces sideways movement
XRP is trading at $2.08 at the time of writing and remains above the support at $2.02. The altcoin has been stuck between $2.20 and $2.02 for several days. This reflects a lack of belief in direction.
The $2.00 zone remains important psychological and structural support. XRP may look like it will rebound from $2.02 at times, but given the current sentiment and macro signals, the price is likely to stay below $2.20 unless buyer interest strengthens.
If market conditions deteriorate further and XRP loses both $2.02 and $2.00, the bullish neutral thesis will collapse. The failure could push the price below $1.94 and towards $1.85, potentially exposing XRP to even bigger losses.
