XRP Faces Pressure as Network Growth Slows and Bearish Patterns Form

The XRP network is flashing early warning signs, with a steep drop in newly created wallet addresses raising concerns about fading interest.

Over the past month, new address activity has declined by 44%, falling from around 5,200 on March 22 to just 2,900 by April 17, according to Glassnode data. This cooling adoption trend coincides with a broader price dip, suggesting that investor enthusiasm may be waning.

Technical signals are adding to the caution. Crypto analyst Ali Martinez recently pointed to a bearish head-and-shoulders pattern on XRP’s chart, with the price breaking below a key neckline at $2.05—a level that has since been retested and rejected.

If this pattern plays out fully, XRP could retrace to the $1.30–$1.40 range, marking a possible 30% drop from current levels.

The bearish case is further supported by an uptick in short positions and increasing whale activity, as traders anticipate more downside. Another analyst, CrediBULL, believes XRP must hold the $1.60 zone to avoid deeper losses and potentially reset for a recovery.

At present, XRP is trading at $2.04 after a 7% weekly decline, showing short-term weakness while still holding above its 200-day moving average—a sign of longer-term resilience. However, sentiment remains shaky. The Fear & Greed Index sits at 37, indicating investor caution, while momentum indicators such as RSI remain neutral. Unless XRP can reclaim lost ground soon, a larger correction could be on the horizon.

Alexander Stefanov