XRP price is once again under downward pressure due to the fact that the coin has closed around $1.00, the weakest close for the crypto since November 2024, while there has been growth in activity on the XRP Ledger. The contradiction between the two metrics has made things more complex for investors.
XRP Price Drops 69% as Holder Activity Grows
As reported by the crypto intelligence firm Santiment, XRP was trading at around $1.00 on August 12. This is the lowest daily closing level of XRP price since November 2024 and represents an approximate drop of 69 percent from the January 2025 high level of around $3.30. From past price levels, XRP price was above $3 in January 2025.
The latest weakness is significant since XRP is coming very close to the level that has already received much market attention. However, despite the decreasing price, one can see some indications that current holders have become more active.
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XRP Activity Rises Despite the Price Decline
According to Santiment’s recent data, the number of daily active addresses of XRP averaged 35,700 in August versus around 26,400 in July – an increase of about one-third.
In particular, the number on August 11 was especially significant as it recorded the highest level of active address usage since June 5.
On the surface, the increase in active addresses amid a declining price could be viewed positively since a higher number of addresses engaged in the network suggests increased activity. However, there is another piece of information in the data that makes the picture different.
New XRP addresses have remained almost unchanged.
According to Santiment, XRP saw an average of roughly 2,260 daily addresses created in August compared to 2,270 in July. In other words, there is more activity going on within the network, but there is no real surge in terms of gaining new users.
The fact that the number of active addresses increased doesn’t mean that XRP has started a new adoption cycle. It simply means that users who are already familiar with the XRP environment have become more active.
XRP Price Faces Continued Technical Pressure
Currently, XRP price is at $1.00, slightly above the lower Bollinger Band at $0.99310. Meanwhile, the middle Bollinger Band stands at $1.05385, with the upper Bollinger Band at $1.11461. This indicates that price is at the lower end of the bands, implying more selling pressure.
The current level of MACD is -0.02363, below the signal line at -0.01910, indicating that momentum is bearish. Besides, the histogram is negative at -0.00453, indicating that selling pressure prevails. In case MACD does not bounce back, XRP price may continue to face more pressure ahead.
At the time of writing, XRP is trading at $1.00, with a 24-hour trading volume of approximately $1.28 billion and a market capitalization of $63.08 billion. The token has declined 1.4% over the last 24 hours.
What Could Happen Next for XRP Price
The level at $1 is expected to continue as one of the key zones in relation to XRP in the coming period.
Keeping above $1 and breaking out towards the $1.05 zone of the middle Bollinger Band might suggest that bulls have started to take control once again. A breakout above $1.11 would provide an even more bullish signal.
A further drop closer to $1 would increase the chances of the bears gaining control and cause more losses for XRP.
As far as on-chain metrics are concerned, there are two figures to keep track of in addition to volume: active addresses and new addresses.
If active addresses continue to be high and new addresses start to go up, the signal would turn out to be much more favorable, as it would mean that both old and new users are contributing to the network.
Should active addresses stay high but new addresses maintain their numbers at the July level, one might want to be more cautious about the activity surge.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
