XRP faces price pressure as Bitcoin’s drop triggers a wider market pullback, pushing XRP lower.
Declining network growth and fewer active addresses signal waning investor interest in XRP.
Egrag predicts XRP could reach $15 by May 2025 based on Fibonacci and Elliott Wave analysis.
XRP has been under considerable price pressure following Bitcoin’s 15% correction from its all-time high of $108,421. The fall in the price of Bitcoin has led to a plunge in the prices of many other cryptocurrencies. Altcoins such as XRP, which had earlier rallied, have pulled back most of their gains. Since XRP has a strong correlation with Bitcoin, the token may also follow the BTC trend, and it may fall to the $1 level.
Network Growth Decline
The factor that has been observed in the price decline of XRP is the slow down in network growth and fewer active addresses per day. This shows that the investors are gradually losing interest in the token. When these metrics drop, it goes hand in hand with the low level of enthusiasm that the investors have for the token which is indicative of price reversal. This is similar to previous cycles which had a drop in the price of XRP following a strong trend, with people selling the token.
Source: Santiment
The MVRV (Market Value to Realized Value) ratio for XRP at the moment is at 77%. This means that if an investor had invested in XRP in the last one year, he would be 5977% in profit. In particular, at the periods of the highest price of XRP for the year, the MVRV ratio was much higher and reached 200%. This kind of unrealized gains usually create selling pressure as investors seek to bank their gains. Thus, it might worsen and lead to a return of XRP to the $1 level.
Source: Santiment
Between November 29 and December 28, XRP whales holding 100,000 and 1 million tokens offloaded 110 million XRP. This selloff contributed to XRP’s 32% drop from its yearly high of $2.90. If this trend continues, the price of XRP may continue to fall, heading toward the critical $1 level.
Source: Santiment
Despite the recent selloffs, XRP’s long-term trend remains bullish. Currently, XRP is consolidating in a sideways movement, which is common after a strong price surge. The token is down by 1.8% in the last 24 hours and 7.17% over the past week. As of press time, XRP is trading at $2.16, indicating a temporary pullback rather than a major downtrend.
XRP is holding strong above its 2021 high of $1.96, a positive sign for the market. This support level is crucial for maintaining the bullish momentum. If XRP stays above $1.96, it could continue its upward trajectory. However, a deeper pullback is possible if the price drops below this level.
XRP’s Long-Term Bullish Outlook
Analysts are also monitoring XRP’s recently increased transaction velocity, which CryptoQuant suggests could signal a breakout in the near future. Based on Fibonacci and Elliott Wave analysis, analyst Egrag Crypto predicts XRP could hit $15 by May 2025. XRP’s price direction remains uncertain, with key support and resistance levels in focus.
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