Is XRP Facing a Potential Drop to $0.80? Analyst Weighs In

Recent analysis suggests that XRP may be at risk of declining to the $0.80 mark due to unfavorable trends observed in on-chain data. Analyst Ali Martinez highlights decreasing network activity and significant selling pressure from large investors, known as whales, as key factors affecting XRP's price stability.

Key Takeaways

XRP has shown signs of declining interest and activity based on on-chain metrics.
The number of active addresses participating in transactions has dropped significantly.
Whale investors have recently sold a large amount of XRP, indicating possible bearish sentiment in the market.
If selling pressure continues, XRP may lose its support at $1.77, potentially leading to a further drop toward $0.80.

XRP

Analyzing the Recent Bearish Trends in XRP

In a recent discussion on social media platform X, cryptocurrency analyst Ali Martinez explained why XRP could see a decline towards the $0.80 level. He noted that "network activity has cooled sharply." There are various methods to assess network activity, but Martinez specifically referred to the Active Addresses metric on the blockchain.

This metric tracks the total number of unique addresses engaging in transactions daily. A chart shared by Martinez indicated a decline in active addresses for XRP.

The data showing the decrease in XRP active addresses earlier this month | Source: @alicharts on X

A reduction in active addresses typically signals declining interest in the asset. Martinez mentioned, “Daily active addresses have fallen to approximately 38,500, indicating decreased participation and engagement.”

Another concerning sign is the supply held by whale investors—individuals who possess a substantial amount of XRP in their wallets. Recent data shows that these whales have sold around 40 million tokens.

XRP Whale Supply
Recent changes in the supply held by XRP whales | Source: @alicharts on X

Because whales control significant portions of the asset, their actions greatly impact the market. The recent selling from these large investors could lead to a bearish atmosphere for XRP, as it reflects a lack of confidence from prominent stakeholders.

Additionally, Martinez presented a chart of XRP's UTXO Realized Price Distribution (URPD). This metric illustrates the supply of XRP that investors last bought at various price levels throughout its history.

XRP URPD
Significant demand zone identified just below the current price level of XRP | Source: @alicharts on X

The chart reveals that a considerable amount of supply was last purchased at the $1.77 level, which is just below the current price of XRP. If the asset drops to this level again, previous investors may decide to buy in response. Typically, in a bullish market, this reaction results in increased buying activity. However, given today’s market sentiment around digital assets, this support level might not hold firm.

Martinez cautioned, “If selling pressure continues, XRP risks losing the $1.77 support. A drop below this level would open the door to the next significant support area near $0.80.” This potential support zone at $0.80 is currently the most substantial demand region beyond the $1.77 level.

Current XRP Price

As of this writing, XRP is priced at approximately $1.86, showing no change compared to the previous week.

XRP Price Chart
Price trend for XRP over the last five days | Source: XRPUSDT on TradingView