XRP Price Drops Amid Crypto Market Decline

The price of XRP fell significantly on Thursday, reaching $0.4400, its lowest point since April. This marks a 41% decline from its highest value this month. Ripple, a major player in the cryptocurrency industry, is experiencing several challenges that are contributing to this drop.

On-Chain Data Highlights Ripple’s Struggles

Recent on-chain data indicates that Ripple’s network growth has stalled. According to available statistics, the number of unique active addresses has plummeted from 50,000 in January to just 5,850 today. Furthermore, transaction volumes have also seen a drastic reduction, falling from 6.8 million in January to just over 1 million currently.

Additionally, the number of payments between accounts has decreased from almost 6 million in December to 1.1 million. These figures suggest a significant reduction in network activity and usage.

Market Positioning Concerns

Investors are increasingly worried about Ripple’s positioning within the financial services industry. Originally, Ripple Labs aimed to facilitate faster cross-border transactions for institutions like banks. However, today, these institutions have more efficient alternatives such as stablecoins. For instance, ANZ Bank, a leading Australian financial institution, has successfully used alternative technologies to transfer stablecoins.

XRP Whales Dumping Tokens

XRP whales have been offloading their holdings. Data shows that a whale moved tokens worth $15 million to Bitso on Wednesday, while another transferred $14.8 million to Bitstamp the same day. In total, whales have sold XRP tokens worth $60 million this week, signaling a lack of confidence in the token’s short-term performance.

🚨 32,010,000 #XRP (14,823,091 USD) transferred from unknown wallet to #Bitstamp

Technical Analysis Indicates Further Decline

From a technical perspective, Ripple is also facing risks. The token has formed a double-top pattern at $0.7485, observed in November last year and March 2024. This pattern typically signals potential further downside. XRP has now fallen below the pattern’s neckline at $0.4872 and formed a death cross on April 20th when the 200-day and 50-day moving averages intersected.

On Thursday, XRP lost its final support at $0.4557, which it had struggled to stay above since May. This could indicate that bearish trends are prevailing, potentially pushing XRP prices even lower.

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