XRP Price Faces Pressure Amid Declining Active Addresses

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XRP's price has declined nearly 4% in the past 24 hours and 21% over the last 30 days, reducing its market capitalization to $144 billion. The downturn coincides with alarming technical signals, including a plummeting Chaikin Money Flow (CMF) and a 53% drop in active addresses. With key indicators like the death cross formation emerging, traders are closely monitoring whether XRP stabilizes or enters a deeper correction.

Key Technical Indicators Signal Bearish Momentum

Chaikin Money Flow (CMF) Hits Historic Low

XRP’s CMF has fallen to -0.27, marking its lowest level since June 2022. This indicator evaluates buying/selling pressure by assessing price and volume dynamics:

A sustained negative CMF suggests escalating capital outflows, weakening bullish momentum. Historically, prolonged negative CMF precedes extended downtrends.

👉 Explore XRP’s price trends

Active Addresses Drop 53% in 30 Days

XRP’s 7-day active addresses nosedived to 190,470—a 53% decline from January 2024. This metric reflects network engagement:

Fewer active addresses often correlate with reduced liquidity and weaker price action, signaling dwindling investor interest.

Price Analysis: Potential Scenarios

Bearish Outlook: Death Cross Formation

XRP’s EMA lines show a death cross (short-term averages crossing below long-term ones), typically signaling intensified downward momentum. Key levels:

Bullish Reversal Case

If XRP regains momentum:

FAQs

Q: What does CMF’s negative value mean for XRP?
A: It indicates dominant selling pressure, raising risks of further price declines unless capital inflows rebound.

Q: Why are active addresses important?
A: They measure network activity; fewer addresses suggest lower trading demand, often preceding price stagnation.

Q: Can XRP recover from its current slump?
A: Yes, if CMF stabilizes and active addresses rebound, but current signals favor caution.

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Conclusion

XRP’s technical and on-chain metrics highlight significant bearish pressure. Traders should watch for CMF reversals and address activity shifts to gauge potential recovery. Strategic support/resistance levels will dictate short-term price action.


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