XRP is once again stuck in a tight consolidation, extending a rangebound pattern that has held the altcoin for several days.
The altcoin is once again attracting the attention of traders, but this interest has not yet led to meaningful market participation or price expansion.
XRP investors are pulling back
The number of active addresses on the XRP Ledger has sharply declined to 35,931 — the lowest level in more than three months. This drop highlights the decreasing engagement of investors, as users are executing fewer transactions on the network. The inconsistency in activity reinforces the perception that XRP is struggling to generate momentum.
This decreased number of participants weakens the foundation needed for a sustainable recovery. When network activity is so low, price increases often quickly lose their strength. This makes it difficult for XRP to create the demand needed to break out of its established range.
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The NVT ratio is sending a warning signal as it rises to a two-week high. An increasing NVT usually suggests that an asset is overvalued relative to its transaction volume. In the case of XRP, weak on-chain activity and increased value pressure form a bearish combination that complicates recovery prospects.
This imbalance indicates that investors may be pricing in optimism that is not supported by the current fundamentals of the network. Until transaction activity increases, XRP is likely to remain vulnerable to correction despite short speculative rises.
XRP is trading at $2.08 at the time of writing, maintaining a position above the $2.02 support. The altcoin has been trapped between $2.20 and $2.02 for several days. This reflects a lack of directional conviction.
The $2.00 zone remains a crucial psychological and structural support. XRP may sometimes bounce off $2.02, but given the current sentiment and macro signals, it is likely to stay below $2.20 unless buying interest increases.
If market conditions deteriorate further and XRP loses both $2.02 and $2.00, the bullish-neutral expectation would collapse. A breakout could bring the price below $1.94 and towards $1.85, exposing XRP to greater losses.
