Network activity has dropped to lowest levels since November 2024, averaging 40,000 daily active addresses
Ripple’s $1.25 billion acquisition of Hidden Road aims to position XRP in both digital and traditional markets
Technical indicators show neutral-to-bearish posture with support at $2.08-$2.02 range
XRP has been trading in a narrow range between $2.03 and $2.30 for much of the past month, currently hovering around $2.13. This comes as Ripple released its Q1 2025 market report showing several positive developments despite a recent cooling in on-chain activity.
The price has decreased by about 8% over the past week, reflecting broader market volatility. Chart analysis shows XRP is forming a falling wedge pattern, which typically precedes an upward breakout.
The current price places XRP near the 61.8% Fibonacci retracement level at $2.13, coinciding with a key demand zone between $2.13 and $2.14.
Short-term technical indicators suggest caution. The 4-hour chart shows a potential death cross between the 50 and 200 EMA lines. The RSI is approaching oversold territory, reflecting the recent decline in buying momentum.
If a bullish breakout occurs, price targets include the $2.50 psychological level, with optimistic projections reaching $2.75 to $3.15.
Institutional Adoption Grows
Ripple’s Q1 report highlighted several positive developments for XRP. Franklin Templeton has filed an S-1 form for an XRP-based ETF, while Volatility Shares has filed for three XRP ETFs.
Brazil’s regulatory body CVM has approved a dedicated XRP ETF, and CME Group has launched XRP Futures trading.
Investment products based on XRP have seen strong inflows, with year-to-date inflows reaching $214 million. This places XRP investment products just $1 million away from overtaking global Ethereum funds.
The report also noted positive regulatory developments, including the new U.S. administration’s executive order supporting cryptocurrency and Paul Atkins becoming SEC chairman.
These developments come after the conclusion of Ripple’s long-running legal battle with the SEC, which has opened new paths for institutional adoption.
Network Activity Cools Down
Despite the positive institutional news, on-chain data shows a cooling period for the XRP Ledger during Q1 2025. New wallet creation and overall transaction volume have declined by 30-40%.
The number of daily active addresses has dropped to around 40,000, the lowest since November 2024. This represents a steep decline from March’s activity, which consistently saw around 300,000 daily active addresses and peaked at over 612,000 on March 19.
Large transactions exceeding $100,000 have also decreased, falling from over 1,500 per day in March to roughly 1,000 daily transactions currently.
DEX volume on the XRP Ledger has decreased by 16% quarter-on-quarter.
One bright spot in network activity is Ripple’s stablecoin RLUSD, which has emerged as a key driver of on-chain activity. Its market cap has surpassed $90 million, with cumulative DEX volume exceeding $300 million.
Despite the slowdown in user activity, development work on the network has increased substantially. The past 30 days saw a 196% increase in developer contributions to the XRP Ledger, suggesting new protocols and updates are in development.
On May 5 alone, two new protocols announced their debut on XRPL: Vaultro Finance, a tokenized index fund, and XpFinance, a decentralized lending protocol.
Strategic Acquisition
A major highlight from Ripple’s Q1 report was its $1.25 billion acquisition of Hidden Road, one of the fastest-growing prime brokers globally. This marks one of the largest acquisition deals in the digital assets space.
Through this acquisition, Ripple aims to position its RLUSD stablecoin as an enterprise-grade USD-backed stablecoin with real-world utility. The company plans to leverage its collateral across prime brokerage products.
This strategy could make RLUSD the first stablecoin enabling cross-margining between digital assets and traditional markets, potentially strengthening XRP’s position across both ecosystems.
Technical Outlook
XRP’s technical indicators present a neutral-to-bearish picture in the short term. The RSI stands at 44.7, in the neutral zone, while the stochastic RSI suggests XRP is oversold.
The MACD indicator points to a short-term downward trend, with most short to mid-term moving averages trending lower and giving “sell” signals.
The 200-day moving average at approximately $1.99 provides underlying support. If XRP breaks below the $2.03 level with significant volume, a deeper correction toward this average or lower may occur.
Key support levels to watch include $2.10, $2.08, and $2.02, with resistance at $2.17, $2.19, and $2.22.
For a bullish reversal, XRP would need to close above $2.20, potentially targeting $2.30 or higher. A clean move above $2.30 might lead to a breakout toward $2.45.
XRP currently sits at a critical juncture. While institutional interest grows and strategic acquisitions position the token for future growth, the immediate price action remains constrained by technical factors and reduced network activity.
The cryptocurrency’s next moves will likely depend on whether new developments can reignite user activity and overcome the current technical resistance levels.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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