Significant Drop in New XRP Account Activations
The XRP network is currently witnessing a marked reduction in on-chain engagement as the digital asset endeavors to maintain its value above the significant $2 price point.
A particularly striking indicator of this slowdown is the daily creation rate of new XRP accounts, which has plummeted from a historical peak of 30,641 on December 2 to a mere 1,822 as of May 25.
This represents a dramatic 94.05% decrease within less than six months, according to data from XRP Scans, as reported by Finbold.
Historical Context of Network Activity and Impact of Recent News
It’s pertinent to note that the previous surge in new account activations coincided with XRP’s breakout from a protracted period of price consolidation below the $1 level.
This spike in activity was aligned with a broader market upswing following an election, suggesting a revival of investor interest during that period, likely fueled by anticipation of a more favorable regulatory environment for the cryptocurrency sector.
Interestingly, despite several recent ostensibly positive developments, the pace of new account generation on the XRP network has remained notably subdued.
For instance, there has been continued progress in the legal proceedings between Ripple and the Securities and Exchange Commission (SEC), with reports indicating that both parties are moving towards a settlement, contingent upon court ratification.
Additionally, there is a growing market expectation that the SEC might approve a spot XRP Exchange Traded Fund (ETF) in 2025.
Implications of Declining Activity on XRP’s Price Trajectory
Notwithstanding these developments, XRP has largely struggled to reclaim the $3 valuation.
Consequently, the observed decline in network activity, coupled with stagnant price performance, could indicate an ongoing phase of market consolidation or potentially signal a forthcoming price correction.
Current XRP Price Action and Technical Indicators
At the time of this report, XRP was trading at $2.28, reflecting a 2.87% decrease over the past 24 hours and a decline exceeding 6% on its weekly chart.
From a technical analysis standpoint, XRP’s 50-day simple moving average (SMA) is positioned at $2.24, while its 200-day SMA is considerably lower at $1.91.
The spread between these two moving averages suggests that a longer-term bullish trend may still be fundamentally intact, although recent price action hovering near the short-term average could point towards a period of consolidation.
Analyst Perspectives: Potential Breakout vs. Critical Support Levels
In contrast, pseudonymous market analyst RishHad has identified indications of renewed strength in the token, signaling a potential upward breakout above the $3 threshold.
According to their analysis on May 25, XRP is currently finding stability just above a minor support zone at $2.24.
This price region is reportedly attracting short-term buyers, while a more significant support level lies below $2.01, a price point that has historically demonstrated substantial buying interest and could serve as a foundation for a price rebound if retested.
The prevailing consolidation pattern is interpreted as constructive, with a bullish technical configuration suggesting a possible move towards the $3.20 to $3.60 price range.
A critical level for observation is $1.91, a horizontal support that has historically proven resilient.
A definitive break below this point could invalidate the current bullish structure and potentially signal a return to bearish market conditions.
