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 grew their positions in the last month. They now control 12.32% of the total supply of XRP, up from 10.91% at the beginning of April.
Even larger holders, with 100 million to 1 billion XRP, also saw a minor increase, and now own 14.37% of the circulating supply. Such accumulation behavior generally results in bull runs since whales tend to book their position beforehand in anticipation of major catalysts, such as good XRP lawsuit news or SEC Ripple case developments.
Market watchers believe this increased whale activity might be an indicator of growing optimism surrounding the Ripple SEC lawsuit and potential approval of an XRP ETF. Any settlement or regulatory decision by the SEC would be a strong bullish driver for Ripple crypto.
Ripple Price Prediction: $3 Target Still in Sight
From a technical standpoint, XRP is hovering just above critical support at $2.10. Bulls appear to be preparing for a recovery, but any meaningful upside is contingent on regaining lost ground above key moving averages. The 50-, 100-, and 200-EMAs—clustered between $2.18 and $2.20—now serve as immediate resistance levels. A breakout above this zone would open the door to retesting April’s high at $2.36 and possibly March’s peak at $2.50.
XRP holds firm above $2.10 as bulls eye a potential rebound toward the $3.00 mark. Source: XRP-Jonny on TradingView
Only a strong close beyond these levels would validate the medium-term XRP price prediction of $3.00. Until then, the trend remains fragile, and downside risks remain, especially with weak on-chain support.
If XRP fails to hold above $2.10, it could risk a drop toward the next key level at $1.96, and possibly even test the April 7 low of $1.61 in a bearish scenario. Conversely, if XRP regains strength and closes above $2.20, a renewed push toward higher targets could follow swiftly.
Volume Surge Points to Market Repositioning
Supporting the current price volatility is a notable surge in trading volume. Daily volume has climbed nearly 25% to $1.86 billion, suggesting heightened activity despite the slight price drop. Analysts interpret this as a mix of profit-taking and strategic repositioning by traders preparing for XRP’s next major move.
“Rising volume during a price decline can indicate distribution, but it may also signal that traders are hedging or preparing for a swing move,” said one market strategist.
Looking Ahead: XRP at a Pivotal Juncture
While whale accumulation offers a bullish backdrop, declining user engagement and bearish technical indicators present short-term headwinds. The next few sessions will be crucial in determining whether XRP can reclaim momentum or continue its correction.
XRP was trading at around $2.13, down 2.71% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin
For now, the Ripple XRP news narrative is split between long-term optimism and short-term caution, as market participants await clarity on both price direction and legal outcomes from the ongoing XRP SEC lawsuits.
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