Is XRP About to Take a Nosedive? Here’s Why You Should Be Worried

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Key Takeaways:

  • XRP forms an inverted V-shaped correction pattern on the daily chart, risking a 20% drop to $1.70. Not that we’re counting on it, of course.

  • A bearish divergence from the weekly RSI points to increasing downward momentum. It’s like a slow-motion car crash—painful, but inevitable.

  • Declining daily active addresses and new addresses signal reduced transaction activity and less demand for XRP. Turns out, not everyone is obsessed with XRP. Who knew?

XRP price has fallen 18% since its glorious May peak of $2.65. Now, a convergence of factors suggests a possible plunge toward $1.70. We can almost hear the crypto enthusiasts holding their breath.

XRP’s Inverted V-Shaped Pattern Hints at a 20% Price Drop

XRP’s price action between April 7 and June 2 has led to the formation of a delightful inverted V-shaped pattern on the daily chart. Just what we all needed, right?

It all started with an initial surge, where XRP price shot up 62% from a low of $1.61. Unfortunately, it hit a bit of a wall at the $2.65 resistance level, where buyers got cold feet, and the profit-taking began.

What followed was a sharp correction, with the RSI plummeting from 68 to 41 since May 12. If you’re wondering, this indicates that things are heading south, and fast.

As the price aims to complete the inverted V-shaped pattern, it could drop further toward the neckline around the $1.72 demand zone. Yes, that’s a 20% drop from where we stand. Don’t say we didn’t warn you.

Popular analyst MasterAnanda on TradingView echoed these concerns, pointing out that the lack of bullish momentum and the rejection from key support levels might lead XRP straight into the land of sub-$2.00 prices.

He even noted that XRP has broken below a rising channel with three consecutive daily closes under the lower trendline. If you don’t understand what that means, just know that it’s not a good sign.

“It looks like XRPUSDT can recover any minute now, but the bearish momentum continues to grow,” MasterAnanda said, adding that XRP might keep dropping until it hits $1.72, where it could find some much-needed support.

“The correction might not be over.”

XRP’s Bearish Divergence

XRP’s downward trajectory is further supported by a growing bearish divergence between its price and the relative strength index (RSI). It’s like watching a parade of red flags—how charming.

The daily chart shows that between November 2024 and June 2025, the XRP/USD pair rose, making higher lows. But wait—there’s a twist! The weekly RSI was descending from 92 to 51 during the same period. I’m sure that makes perfect sense to someone.

A divergence between rising prices and a falling RSI usually signals a weakening uptrend, which means traders might sell off at local highs. Because who doesn’t love a good profit-taking session when things start looking dicey?

The chart above also shows that XRP is facing significant resistance between $2.50 and $2.65. And just like that, we’re back to square one, with the price likely to stay trapped in this zone for a while.

Declining XRP Ledger Network Activity

But wait, there’s more! The XRP Ledger has seen a notable drop in network activity over the last two months. Oh, the excitement!

According to on-chain data from Glassnode, the daily active addresses (DAAs) on the network have plummeted far below the year-to-date peak of 608,000 DAAs recorded on March 19. Now, there are only around 31,200 DAAs. Not exactly a party, is it?

New addresses have also dropped from a 2025 high of 15,800 daily to just 4,400. If you’re still holding out hope for XRP’s future, we suggest you keep your fingers crossed. The network adoption and user engagement? Not looking great.

Historically, declines in network activity tend to lead to price stagnation or drops. So, unless there’s a sudden surge of interest in XRP (which is, let’s be honest, highly unlikely), things could get uglier from here.

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2025-06-02 13:05