XRP is facing significant downward pressure, dropping more than 5% in the past 24 hours and over 12% in the last week. This sharp correction has coincided with deteriorating technical indicators and a dramatic decline in on-chain activity, raising concerns about the asset’s near-term resilience. As momentum shifts heavily toward bearish territory, traders and investors are closely watching key support levels and network metrics for early signs of recovery.
With sentiment weakening and user engagement cooling rapidly, the path of least resistance for XRP appears to be downward—unless a strong reversal catalyst emerges soon.
DMI Signals a Powerful Downtrend
The Directional Movement Index (DMI) for XRP is currently flashing strong bearish signals, indicating that selling pressure is not only increasing but accelerating. The Average Directional Index (ADX), which measures trend strength regardless of direction, has surged from 25.43 to 47.14 in just one day.
An ADX value above 25 typically suggests a developing trend, while readings above 40 indicate a very strong trend. At nearly 47, XRP’s current ADX confirms that the ongoing downtrend is powerful and gaining momentum.
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Breaking down the DMI components further reveals the full scope of bearish dominance:
- The +DI line, which tracks upward price movement, has collapsed from 20.13 to just 5.76.
- Meanwhile, the -DI line, representing downward momentum, has spiked from 8.97 to 33.77.
This widening gap between +DI and -DI underscores a severe imbalance in market control—sellers are firmly in charge, while buyer participation continues to fade. Without a sudden resurgence in buying interest, this technical configuration suggests further downside pressure could persist in the short term.
Historically, such strong ADX readings during downtrends have often preceded extended correction phases, especially when combined with declining volume and on-chain activity—both of which are now evident in XRP’s data.
Active Addresses Crash by Over 70%
One of the most telling signs of weakening market health is the collapse in XRP’s 7-day active addresses—a key metric for measuring real-world network usage.
Just days ago, on March 19, active addresses hit an all-time high of 1.22 million, reflecting heightened transactional activity and growing user interest. However, that momentum has since reversed sharply. The latest data shows active addresses have plunged to only 331,000, marking a staggering 72% decline in less than a week.
This sudden drop suggests that the surge in network engagement was likely short-lived—possibly driven by speculative trading or temporary event-based activity rather than sustained adoption.
Why does this matter?
Active address trends are a reliable proxy for on-chain demand. When more users interact with a blockchain—sending payments, converting assets, or using decentralized applications—it signals organic growth and confidence in the network.
Conversely, a steep decline like XRP’s recent plunge often correlates with fading enthusiasm, reduced utility, or broader market risk aversion.
With fewer participants actively using the XRP Ledger, there’s less fundamental support for price appreciation. This makes the asset more vulnerable to external shocks and macroeconomic headwinds.
Unless transaction volume and user activity begin to recover, this erosion in network engagement may continue to weigh on investor sentiment and limit any meaningful price recovery.
Key Price Levels to Watch: $1.90 Support and $2.22 Resistance
From a technical perspective, XRP’s moving averages are now aligned in a classic bearish formation. The short-term exponential moving averages (EMAs) have crossed below the longer-term EMAs, confirming a shift in momentum toward the downside.
This bearish EMA crossover often signals the start—or continuation—of a correction phase, especially when reinforced by other indicators like RSI contraction or declining volume.
Currently, the first major support level sits at $1.90**. A break below this point could open the door to further losses, potentially pushing XRP toward **$1.77 in April if selling pressure persists.
On the upside, any attempt at recovery will face strong resistance at $2.22. A decisive breakout above this level would be required to restore bullish momentum.
Should XRP manage to reclaim $2.22, the next targets would be:
- $2.47 – intermediate resistance
- $2.59 – upper boundary of recent consolidation range
However, given the current weakness in both price action and on-chain fundamentals, such a reversal appears unlikely without a major catalyst—such as regulatory clarity, institutional adoption news, or broader market recovery.
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Frequently Asked Questions (FAQ)
Q: Why is XRP dropping so sharply despite recent highs in active addresses?
A: While active addresses did reach record levels recently, that surge was likely driven by short-term speculative activity rather than lasting adoption. The rapid decline suggests the momentum wasn’t sustainable. Combined with strong bearish technicals like rising ADX and collapsing EMAs, this has triggered a wave of profit-taking and risk-off behavior.
Q: What does a high ADX value mean for XRP traders?
A: A high ADX (above 40) indicates a strong trend is forming. In XRP’s case, since price is moving downward, it confirms that the downtrend is powerful and likely to continue unless reversed by significant buying pressure. Traders should prepare for increased volatility and potential further declines.
Q: Can XRP recover if active addresses rebound?
A: Yes—rising active addresses signal renewed network usage and user confidence, which can provide fundamental support for price recovery. However, price action usually leads on-chain data, so a sustained uptrend would require both improved technicals and growing transaction volume.
Q: Is a drop below $1.90 likely?
A: Given the current trajectory and lack of bullish momentum, a test of $1.90 is increasingly probable. If selling pressure continues and no support emerges from institutional or macroeconomic factors, a breakdown below this level cannot be ruled out.
Q: What would trigger a bullish reversal for XRP?
A: Potential catalysts include positive regulatory developments (e.g., SEC lawsuit resolution), new partnerships leveraging RippleNet or XRPL smart contracts, or broader crypto market recovery driven by Bitcoin ETF inflows or Fed policy shifts.
Final Outlook: Caution Dominates Amid Weak Fundamentals
XRP is navigating one of its most challenging phases of 2025, with both technical and on-chain indicators pointing to weakening momentum. The combination of plunging active addresses, bearish DMI readings, and negative EMA crossovers paints a picture of an asset under intense selling pressure.
While past performance shows XRP can rebound quickly during favorable market conditions, the absence of strong fundamental drivers limits its upside potential in the near term.
Investors should remain cautious and monitor three critical factors:
- Whether active address trends stabilize or continue declining
- If price holds above $1.90 or breaks lower
- Any shifts in broader cryptocurrency market sentiment
Until clearer signs of recovery emerge, the balance of risk remains skewed to the downside.
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