XRP Risks 18% Drop as Network Activity Plummets

- XRP price risks an 18% slide to $2.40 due to weakening momentum and bearish technical signals. - Declining network activity and heightened selling pressure underscore a challenging outlook. On August 20, 2025, Cointelegraph reported that XRP could face a substantial 18% price drop, citing bearish technical and on-chain indicators that point to reduced investor demand and mounting downside risks for the cryptocurrency. The analysis identified a bearish descending triangle pattern on XRP's daily chart, which signifies increased selling pressure. A breakdown below the triangle's support line at $2.95 would confirm a continuation of the downward trend, setting a target price of $2.40. On-chain data further amplifies these concerns, as network activity on the XRP Ledger has sharply decreased. Daily active addresses (DAAs) plunged from over 600,000 in March to just 33,000, while transactions fell by 51% from 2.5 million in June to 1.25 million, indicating reduced user engagement. Market dynamics reinforce this bearish sentiment, as the 90-day spot taker cumulative volume delta (CVD) remains negative. This reflects sustained selling pressure from traders who have been taking profits since late July. In addition, a bearish divergence between the relative strength index (RSI) and the XRP/BTC trading pair signals weakening momentum. Over July and August, XRP/BTC recorded higher lows while the RSI formed lower lows, suggesting potential buyer fatigue and diminished upward thrust. These key bearish factors—a descending triangle confirmation, declining network activity, negative CVD, and RSI divergence—collectively point to further downside risks for XRP. As of 20:13 UTC on August 20, XRP was trading at $2.977. According to the latest market data, its 24-hour trading volume had increased by 3.454%.