The XRP price has struggled over the past month, falling sharply as network activity slows and investor demand weakens. Many traders are now asking whether the token could face an even deeper correction in the coming weeks.
Recent Performance of XRP
According to data, XRP was trading at $2.93, which still marks a 19% increase over the past three months and 63% higher than its year-to-date low. With a market capitalization of $173.8 billion and a daily trading volume of $6.4 billion, XRP remains one of the top three cryptocurrencies by market cap.
Much of this year’s gains came after Ripple secured a major legal victory against the U.S. Securities and Exchange Commission. The hype surrounding a possible XRP ETF has also added fuel to investor optimism. However, despite these milestones, the recent decline suggests that the XRP price could be entering a correction phase.
Investor Behavior Signals Weakness
One of the biggest red flags comes from smart money investors. Data from Nansen shows that XRP holdings in smart money wallets have fallen by 80% in just the last month. This matters because institutional and experienced investors often reduce exposure before broader market declines. Retail traders typically follow, which can accelerate downward momentum.
Futures markets also show waning confidence. Open interest for XRP futures dropped from $10.94 billion in July to $7.56 billion recently. The long/short ratio has slipped below 1, showing that more traders are betting on the downside rather than a rebound.
Decline in Network Activity
Another factor weighing on XRP price is reduced activity on the XRP Ledger. Data from Dune Analytics shows that weekly transactions have fallen 14.8% to 12.4 million, while weekly active addresses slipped 2.1% to 107,340. Lower on-chain activity is often seen as a sign of declining demand, which fuels bearish sentiment.
XRP Price Analysis
On the technical side, XRP price has dropped below its 20-day and 50-day moving averages, showing that bearish momentum is currently in control.
- The Relative Strength Index (RSI) is showing bearish divergence, a common signal that traders may take profits and reduce positions.
- The Aroon Down indicator is at 92.86% while the Aroon Up is only 7.14%, further confirming the strength of the bearish trend.
If selling pressure continues, XRP could revisit the $2.70 support level, which acted as a key floor in August. A break below this could expose the token to further losses, potentially pushing the price toward $2.30—the 23.6% Fibonacci retracement level.
Outlook
While XRP has seen impressive gains earlier this year, recent signals suggest caution. The combination of reduced institutional interest, falling futures activity, and weaker network usage could keep XRP price under pressure in the short term. Unless demand strengthens or new catalysts emerge, traders should prepare for possible further corrections.
