The XRP price continues to draw attention from crypto traders as it forms a potentially bearish setup. The popular cryptocurrency, developed by Ripple, currently shows signs of a descending triangle—a chart pattern that suggests a probable downward move. This technical structure, paired with declining network usage and trading signals, points to a potential 45% price drop if critical support zones do not hold.
XRP Descending Triangle Points to Bearish Outcome
Since its significant rally in late 2024, the XRP price chart has been forming a descending triangle formation. Technically, this setup is seen as a bearish reversal signal, especially when it follows an extended uptrend. The descending triangle is defined by a horizontal support base and a downward-slanting resistance line.
If XRP fails to maintain its ground above this horizontal base and closes below support, the projected decline aligns with the height of the triangle pattern. This projection places XRP at an estimated price of $1.20—roughly a 45% slump from its recent levels.
Currently, bulls are grappling to keep XRP above its 50-day simple moving average (SMA), located near $2.18. This resistance zone is crucial. A failure to maintain altitude above this benchmark—as well as the 100-day SMA at $2.06—could trigger a retreat toward the psychological support area of $2.00. If this floor breaks, a further descent toward the $1.20 target seems plausible.
An earlier analysis warned of a possible drop to $1.61 under similar conditions. This warning has gained renewed relevance amid current price structure and sentiment.
On the flip side, if XRP manages to decisively break above the $2.18 triangle resistance, it could invalidate the bearish outlook. Such a move would pave the way for a potential rally toward the $3.00 psychological mark, reversing the current market negativity.
On-Chain Metrics Reveal Weak XRP Network Activity
In addition to technical signals, fundamentals are showing distress as well. The XRP Ledger has experienced a sharp fall in network activity compared to the first quarter of 2025. According to recent on-chain data, daily active addresses have dropped significantly since hitting a high of 608,000 on March 19.
As of early May, the daily activity hovers around only 30,000 addresses. This reduced participation hints at falling user engagement and diminished transaction volume, both of which often foreshadow a slump in liquidity and market momentum.
Historically, when network activity slows, it often results in price stagnation or even further declines. The weakening fundamentals correlate closely with the ongoing technical setup and sentiment.
Meanwhile, current market activity reflects growing trader caution. Over the past 24 hours, XRP has seen a 1.17% dip in price, accompanied by a sharp 30% surge in trading volume, which now clocks in at $2 billion. Rising trading volume in a downward price environment often signals profit-taking or strategic repositioning among participants anticipating a potential breakdown.
Well-known analyst Dom highlighted the spike in selling pressure observed over the past week. This uptick has hampered XRP’s ability to sustain bullish momentum and has compounded bearish expectations.
In summary, XRP finds itself in a tenuous technical position as it navigates a descending triangle pattern with significant downside risk. The combination of waning network activity, weakening technical indicators, and increased selling pressure could reinforce a bearish breakout unless bulls reclaim control by breaking above critical resistance levels.
