The post XRP News Today: XRP Faces Sell Pressure as Network Activity Drops and Volume Spikes Signal Market Caution appeared on BitcoinEthereumNews.com.

Ripple XRP finds itself under pressure as the altcoin struggles to maintain bullish momentum in the face of waning network activity and mounting selling volume. The XRP price has been locked in a tight range around $2.13 as of Tuesday, May 6, representing a modest 2.7% dip over the last 24 hours. Despite recent gains of over 5% on the weekly chart, analysts and investors remain cautious about the immediate future of the Ripple currency price. The latest price behavior follows a close below XRP’s 50-day Exponential Moving Average (EMA) at $2.20 over the weekend. This move has triggered bearish sentiment, with technical indicators signaling the potential for further downside. The Relative Strength Index (RSI) has slipped to 47 on the daily chart—below its neutral threshold—suggesting selling pressure could persist if momentum fails to rebound. Ripple Ledger Activity Slumps Sharply One of the more concerning developments from a fundamental perspective is the steep drop in user engagement on the Ripple ledger. According to Santiment’s on-chain metrics, daily active addresses on the XRP network have plunged from their Q1 peak of around 612,000 to just 40,000 in early May. XRP Daily Active Addresses chart. Source: Santiment Such a steep decline signals a sharp reduction in transactional activity and overall interest in the network. Historically, dips in active addresses have often foreshadowed periods of price stagnation or decline due to thinning liquidity and waning buyer demand. Analysts note that unless user activity rebounds, the Ripple market could remain sluggish in the short term. “Reduced engagement often reflects broader market caution or a lack of confidence in short-term price growth,” one analyst commented. Whale Accumulation Offers Glimmer of Hope In contrast to retail user behavior, XRP whales have been notably active. Whale addresses—particularly those that hold between 10 million and 100 million XRP—significantly…

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Filed under: News - @ May 5, 2025 6:23 pm