XRP Slides to Four‑Month Low as Technical and On‑Chain Indicators Turn Bearish

Technical Charts Warn of Further Decline

On Wednesday, XRP slipped to $1.14, its lowest level in four months, prompting sell signals across major crypto charts. The drop unfolded amid a broader market pullback, with traders watching the digital asset’s price closely after a brief rebound earlier in the week.

Analysts point to a convergence of technical and on‑chain metrics that suggest weakening momentum. Moving‑average crossovers turned negative, while the Relative Strength Index fell below the 30 threshold, traditionally a sign of oversold conditions. At the same time, on‑chain data showed a decline in active addresses and a slowdown in transaction volume, reinforcing a bearish outlook.

The daily chart now shows the 20‑day moving average crossing under the 50‑day line, a classic „death cross” that many traders interpret as a precursor to deeper price falls. Volume spikes accompanying the decline were modest, indicating limited buying pressure to reverse the trend. The MACD histogram has also turned negative, and the Bollinger Bands have narrowed, hinting at reduced volatility but also a lack of upward thrust. „When multiple indicators line up, it often precedes a sustained move,” said crypto analyst Laura Chen. „The current configuration suggests that the recent dip could be more than a short‑term correction.”

Is XRP Heading Toward a Prolonged Downtrend?

On‑chain observations reinforce the technical picture. The number of active XRP wallets fell by roughly 12 % over the past week, while the total transaction count dropped to its lowest point since early March. Such reductions typically signal waning user engagement and can precede price weakness. Moreover, the amount of XRP held in exchange wallets rose, indicating that more holders may be preparing to sell.

Investors are questioning whether the recent slide marks the start of a longer bearish phase. Some market participants argue that the token’s fundamentals—such as its role in cross‑border payments and ongoing regulatory scrutiny—could sustain the pressure. Others point to potential catalysts, like upcoming court rulings involving Ripple Labs, that might reverse sentiment if outcomes are favorable. The uncertainty surrounding these external factors makes forecasting the next price move challenging, but the prevailing data leans toward caution.

If XRP continues to trade below the $1.15 mark, it could test support levels near $1.00, a threshold that has historically acted as a floor before rebounds. Conversely, a breakout above $1.20 would require a shift in both technical momentum and on‑chain activity, possibly reigniting bullish sentiment. Traders are likely to watch these levels closely, adjusting positions as new data emerges.

Frequently Asked Questions

What caused XRP’s price to drop to $1.14? The decline stemmed from a blend of bearish technical signals—such as moving‑average crossovers and a low RSI—and weakening on‑chain metrics, including fewer active wallets and reduced transaction volume.

Could regulatory news affect XRP’s price soon? Yes. Ongoing legal proceedings involving Ripple Labs and regulatory actions in major markets can sway investor confidence, potentially triggering rapid price movements either upward or downward.

Is a rebound possible in the near term? A rebound would likely require a decisive shift in technical indicators, such as a crossover back to bullish territory, and an uptick in on‑chain activity. Until those signs appear, the outlook remains cautious.