XRP Faces Potential Decline as Onchain Activity Drops to Six-Month Low
XRP’s price has dipped to $2.30 amid broader market weakness, with on-chain metrics signaling concerning trends. Despite a 330% year-over-year gain, recent declines and a sharp drop in active addresses suggest potential further downside.
XRP Price Prediction: Onchain Activity Signals Potential Decline Amid Market Weakness
XRP has dipped 1% to $2.30 as the broader cryptocurrency market retreats 2.5%. The token remains 330% higher year-over-year despite recent 2% and 12% weekly/fortnightly declines.
On-chain metrics reveal alarming trends: Active XRP Ledger addresses plummeted 80% from December’s 108,000 peak to just 23,000 - a six-month low. This network activity contraction significantly outpaces XRP’s 30.5% price drop since its January high of $3.31.
Market participants note the divergence between address depletion and price action creates near-term vulnerability. Yet historical context tempers bearish outlooks - current activity still exceeds pre-November 2024 baseline levels.
The impending launch of XRP ETFs later this year may catalyze renewed institutional interest, potentially offsetting retail trader disengagement evident in the on-chain data.
Ripple Price Forecast: XRP Faces Downside Risk Amid SEC Regulatory Conference
XRP’s uptrend shows vulnerability as the price tests the critical $2.27 support level, extending its pullback amid persistent downside risks. The SEC’s upcoming conference on digital assets, scheduled for June 5, adds regulatory uncertainty to the market. Commissioner Hester Peirce and other industry leaders will discuss tokenization and emerging trends, with Ripple advocating for clearer regulatory frameworks.
Technical indicators suggest further losses loom, with XRP trapped in a narrow range between $2.65 and $2.27 for nearly three weeks. The current $2.28 valuation could trigger extended declines, compounded by macroeconomic factors including the Fed’s May meeting minutes and Friday’s PCE inflation data.
Market stagnation may persist through the weekend as traders await regulatory clarity from the SEC’s third Digital Assets Conference. The event will convene asset managers, academics, and regulators to examine the evolving landscape of tokenized assets and investment vehicles.
XRP Bull Flag Pattern Suggests Potential Breakout to $18
Independent analyst EGRAG crypto has identified a bullish continuation pattern in XRP’s weekly chart, suggesting a 70% probability of an upward breakout. The technical setup, based on Bitfinex data, frames XRP’s post-July 2024 rally as a flagpole, followed by a ten-week consolidation channel.
XRP currently trades NEAR $2.30, with key support levels at $1.50 and $0.60. The 20-week exponential moving average at $2.21 reinforces the long-term bullish trend. Logarithmic chart analysis, preferred for crypto’s exponential growth characteristics, points to significant upside potential if the pattern confirms.
Ripple Submits New Legal Memorandum to SEC’s Crypto Task Force
Ripple Labs has escalated its legal battle with the U.S. Securities and Exchange Commission, filing a four-page memorandum to the regulator’s crypto Task Force on May 27. The document directly addresses Commissioner Hester Peirce’s recent "New Paradigm" speech, which questioned when a crypto asset originally tied to an investment contract ceases to be classified as a security.
The company’s Chief Legal Officer, Stuart Alderoty, announced the filing on social media platform X. Ripple’s submission leans heavily on a 2022 academic paper, "The Ineluctable Modality of Securities Law," arguing it remains the most accurate interpretation of current regulations. The memo proposes a two-pronged test to determine when tokens like XRP have sufficiently severed from their original investment contracts.
Dubai’s $16 Billion Real Estate Tokenization on XRP Ledger Marks Major Milestone
Dubai’s Land Department has partnered with Ctrl Alt to launch a $16 billion real estate tokenization project on the XRP Ledger (XRPL), positioning XRP for potential price momentum. The initiative aims to structure and mint property deeds on the blockchain, leveraging XRPL’s decade-proven stability for real-world asset tokenization.
Ripple executive Reece Merrick highlighted projections of the tokenized real estate market reaching $16 billion by 2033—7% of Dubai’s total property transactions. Pro-XRP lawyer John Deaton echoed bullish sentiment, noting the development could catalyze broader institutional adoption of the ledger.
XRP Maintains Resilience with 86% of Supply in Profit Amid Market Volatility
XRP demonstrates notable strength as Glassnode data reveals 86.3% of its circulating supply remains profitable despite broader crypto market pressures. The token’s ability to sustain holder profitability at current levels underscores underlying bullish sentiment, with most investors still positioned advantageously relative to the $2.24 trading price.
Recent volatility saw XRP retreat from its May 14 peak of $2.61, yet the community’s confidence appears unshaken. The resolution of Ripple’s SEC litigation continues to fuel optimism, with on-chain activity showing renewed vigor—daily volume surged 21.7% to 1.08 billion XRP, signaling robust network utilization beyond exchange flows.
While increased token movements may indicate some profit-taking during price fluctuations, the fundamental metrics paint a picture of resilience. The market watches closely as XRP’s unique position—both legally clarified and technically sound—positions it for potential rebounds when macroeconomic headwinds subside.
