- XRP falls 1.94% to $2.75 as risk aversion hits crypto markets.
- Active addresses drop from 50,000 in July to 19,000, signaling weak demand.
- Support at $2.70 is critical; a breach could push XRP toward $2.08.
XRP extended its recent decline on Monday, slipping 1.94% over the past 24 hours to trade around $2.75.
The pullback builds on last week’s sharp sell-off and comes amid broad weakness across cryptocurrency markets.
Analysts say falling on-chain activity and reduced investor appetite are pressuring the altcoin, although a rebound remains possible if key support levels hold.
Investor Sentiment and On-Chain Activity Worsen
The latest slide in XRP comes against a backdrop of rising risk aversion in digital asset markets.
The Crypto Fear & Greed Index has fallen to 46, placing it in the “Fear” zone after moving from “Neutral” last week and “Greed” a month earlier, according to Alternative.me data.
This shift underscores growing investor caution after months of strong price movements.
On-chain metrics reinforce the risk-off mood.
Active addresses on the XRP Ledger have plunged, falling to roughly 19,250 on Monday from around 50,000 in mid-July.
Active addresses track wallets sending or receiving XRP, and the sharp drop suggests waning participation and weaker transaction activity.
Futures market data paints a similar picture.
Open interest in XRP derivatives has fallen from $10.94 billion to $7.7 billion in recent weeks, highlighting a lack of conviction among traders.
Reduced open interest often signals weaker speculative demand, which can increase downside risk in the near term.
Technical Outlook Hinges on $2.70 Support
From a technical perspective, XRP is testing a critical support level at $2.70.
The token has been consolidating inside a descending triangle pattern since it reached a multi-year high of $3.66 in July.
The bearish formation is defined by a flat support line and a descending resistance trendline.
If bulls can defend the $2.70 threshold, XRP could attempt to recover toward the triangle’s upper boundary near $3.09.
That level aligns with the 50-day simple moving average (SMA) and the 0.618 Fibonacci retracement, offering a confluence of technical resistance.
A successful breakout above that zone would strengthen upside momentum and could propel the token toward roughly $3.70, near the apex of the current chart pattern.
However, failure to hold above $2.70 could spur further selling.
The next support range lies between $2.60, near the 100-day SMA, and $2.48, near the 200-day SMA.
A breakdown of this demand zone could expose XRP to losses toward $2.08, representing about a 25% drop from current levels.
Market Signals Underline Uncertain Outlook
Order-flow dynamics show some resilience at $2.70, with liquidation heatmaps indicating buyers clustered around that price.
At the same time, significant sell orders concentrate in the $2.87 to $3.74 range, highlighting the resistance bulls must overcome for a sustained rally.
Technical indicators point to continued downside risk.
According to market reporting, XRP’s Moving Average Convergence Divergence (MACD) may form a bearish crossover in September, which could push the token toward $2.17 if confirmed.
For now, XRP’s short-term trajectory appears to hinge on whether buyers can defend the $2.70 support. While overall market sentiment remains cautious, any rebound from this level could set the stage for renewed upside attempts.
Conversely, a failure to hold would likely extend the current downtrend and deepen losses.