Ripple (XRP) Loses 12% in a Week as Network Activity Declines
Date: 2025-03-31 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The decline has been accompanied by deteriorating technical indicators and falling network activity, raising concerns about XRP’s sustainability at key support levels.
The decline in price momentum and the decline in user activity set the stage for further weakness in Ripple if the situation does not change soon.
Directional Movement Index (DMI) signals a strong downtrend
Technical analysis via the Directional Movement Index (DMI) confirms the prevalence of bearish sentiment. The Average Directional Index (ADX), which measures the strength of a trend regardless of its direction, rose to 47.14 from 25.43 the day before.
Readings above 25 usually indicate a strengthening trend, and the current level above 40 demonstrates extreme strength of the downside momentum. The rising ADX in a bearish trend signals a high probability of further decline in XRP.
The DMI components also confirm the negative outlook. The +DI indicator, which reflects buying pressure, fell from 20.13 to 5.76. At the same time, the -DI, which indicates selling pressure, rose from 8.97 to 33.77.
This divergence between the components confirms the dominance of sellers, which reduces the likelihood of a price recovery in the short term.
In addition to unfavorable technical indicators, there is a sharp decline in activity on the Ripple network. The 7-day active addresses indicator has dropped sharply after the recent peak.
On March 19, it reached a record high of 1.22 million active addresses, indicating significant user engagement. However, at the moment, the number of active addresses has dropped to 331 thousand, which is a drop of more than 70%.
User activity is an important indicator of the network's health. An increase in the number of active addresses is usually associated with increased interest in the cryptocurrency and can support its price. On the contrary, a sharp decrease in this indicator indicates a decrease in interest and creates additional pressure on the price of XRP.
Technical indicators such as exponential moving averages (EMA) confirm the prevalence of bearish sentiment. Short-term EMAs remain below long-term ones, which is a classic signal of market weakness.
If the negative dynamics persist, XRP may test the support level at $1.90 again. A breakout of this level may lead to a further decline in the price of Ripple to $1.77 in April.
On the other hand, if the market changes direction and the price of XRP begins to recover, the first important resistance level will be $2.22. A breakout of this barrier may initiate a new growth, with possible targets at $2.47 and $2.59.
