XRP network activity crashes 95%; What next?

XRP is experiencing a noticeable slowdown in network activity as it struggles to maintain its price above the psychological level of $2. Specifically, the number of new daily XRP accounts created has dropped from an all-time high of 30,641 on December 2 to just 1,822 as of May 25. This represents a staggering 94.05% decline in under six months, according to data from XRP Scans retrieved by Finbold. XRP new accounts activated chart. Source: XRP Scan Notably, the last peak in new accounts coincided with XRP breaking out of a prolonged consolidation phase below $1. That surge in activity aligned with a post-election rally, suggesting renewed investor interest during that period over anticipation of friendly regulation for the sector. Interestingly, even amid recent positive developments, the pace of new account creation remains subdued. For example, progress in the legal battle between the Securities and Exchange Commission (SEC) and Ripple continues, with both parties moving toward a settlement pending court approval. Additionally, there is growing anticipation that the SEC may approve a spot XRP ETF in 2025. Despite these developments, XRP has largely failed to reclaim the $3 mark. As such, declining network activity and stagnating price action could signal an ongoing consolidation phase or even a further correction. XRP price analysis As of press time, XRP was trading at $2.28, down 2.87% over the past 24 hours and more than 6% on the weekly chart. XRP seven-day price chart. Source: Finbold From a technical standpoint, XRP’s 50-day simple moving average ( SMA ) stands at $2.24, while the 200-day SMA is significantly lower at $1.91. This spread suggests a longer-term bullish trend remains intact, though a recent price movement hovering near the short-term average may point to consolidation. Meanwhile, pseudonymous analyst RishHad noted that XRP has identified renewed strength in the token, signaling a potential breakout above the $3 level. XRP price analysis chart. Source: TradingView According to the May 25 analysis, XRP is stabilizing just above a weak support zone at $2.24. This region is attracting short-term buyers, while stronger support lies below $2.01, a level that has consistently seen significant buying interest and could act as a springboard if retested. The current consolidation pattern appears constructive, with a bullish setup suggesting a possible move toward the $3.20 to $3.60 range. One key level to monitor is $1.91, a horizontal support that has historically held firm. A breakdown below this point could invalidate the bullish structure and signal a potential return to bearish conditions. Featured image via Shutterstock The post XRP network activity crashes 95%; What next? appeared first on Finbold .

Source: Finbold