XRP's Rally Loses Steam Under $2.24 Supply Zone
- XRP's rebound falters below the $2.24 supply zone, reflecting heightened downside risks amid geopolitical uncertainty.
- XRP Ledger network activity declines sharply, with active addresses plummeting to 100,000.
- **XRP futures open interest rises slightly to $4 billion** but remains in a downtrend from its mid-May peak of $5.52 billion.
As the broader cryptocurrency market consolidates amid escalating Middle East tensions, Ripple (XRP) remains highly vulnerable to downside risks. XRP’s price hovers around $2.20 at press time, down nearly 1.5% on Tuesday.
The drop from XRP’s recent peak of $2.34 coincides with a dramatic decline in network activity. Active addresses crashed 84% in under three days to 100,000.
Network Activity Slump Tests XRP’s Resilience
XRP’s downside risks are currently confined between key support at $2.09 and resistance at $2.34. Beyond Middle East tensions, this sluggish price action stems from declining activity on the XRP Ledger (XRPL).
Santiment data reveals active addresses surged to 609,000 last Saturday before collapsing to 100,000 by Tuesday—an 84% drop.
This metric tracks XRPL’s performance based on addresses interacting with the protocol (sending/receiving XRP). The sharp decline signals waning demand for the cross-border payment token.
If the downtrend persists—matching April-June lows—XRP’s ability to sustain its uptrend and target highs above $3.00 could weaken.
Futures market data underscores fading confidence. CoinGlass reports open interest (OI) inched up to $4 billion but remains in a downtrend from its $5.52 billion mid-May peak.
OI’s downward trajectory aligns with bearish sentiment, supported by $4.21 million in long liquidations versus $739,000 in short positions over 24 hours.
Derivatives trading volume spiked 200% to $9.8 billion, reflecting heightened demand as traders hedge positions amid geopolitical risks.
Price action may stay muted ahead of Wednesday’s Federal Reserve meeting. K33 Research notes:
"While recent inflation data and conflict could encourage a dovish Fed, potential fiscal expansion via trillion-dollar budgets may push policymakers toward hawkishness."
Technical Outlook: XRP Slides in Downtrend
XRP’s price slides within a descending channel, extending losses since its May peak of $2.65. Monday’s failed breakout above trendline resistance highlights a supply-heavy confluence near $2.24, where the 50-day and 100-day EMAs converge.
A breakout could shift momentum, paving the way for a rally toward $2.65 and $3.00.
The RSI maintains bearish momentum, sloping downward since mid-May. A dip into oversold territory may intensify selling pressure.
Key levels to watch:
- $2.09 (200-day EMA support)—tested last Friday.
- **$2.00 psychological level**—breach risks a drop to April’s $1.61 low.
FAQs
What is Ripple?
Ripple is a payment company specializing in cross-border remittances via blockchain technology. Its RippleNet network enables global payment transfers for financial institutions.
What is XRP’s role?
XRP is the native token of the decentralized XRP Ledger (XRPL). Ripple Labs uses it to facilitate trustless, instant payments, helping institutions reduce transaction costs.
How does XRPL differ from other blockchains?
XRPL uses a unique consensus protocol to combat spam/DDOS attacks. Maintained by a peer-to-peer network, it enables interledger payments without intermediaries.
👉 Discover how XRP compares to other top cryptocurrencies
Who created XRP?
Jed McCaleb, Arthur Britto, and David Schwartz designed XRPL. The token powers transactions on its blockchain.
👉 Learn more about XRP’s technology and use cases
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