- XRP has declined below $3 as retail demand weakens and on-chain activity drops, increasing the risk of a fall to $2.50.
- Futures data and technical indicators signal continued bearish pressure in the short term.
XRP has been falling for three days in a row, raising concerns it could drop to the $2.50 support level. The token is trading just above $2.80, down nearly 5%, as bearish sentiment takes control. Weak fundamentals and low retail interest are adding pressure.
Falling On-Chain Activity Signals Reduced Investor Interest
A major reason for XRP’s decline is the drop in on-chain activity. Data from CryptoQuant shows that active addresses on the XRP Ledger (XRPL) fell from around 50,000 in mid-July to roughly 24,000. Active addresses measure wallets that send or receive XRP, so this decline shows that investors are stepping back.
Lower activity makes XRP more vulnerable to sudden price drops. It also highlights weak fundamentals, which could keep the token under pressure in the short term.
Futures Market Shows Waning Confidence
Data from CoinGlass confirms that investor interest is weakening. Futures Open Interest (OI) fell from $10.94 billion to $7.97 billion over the same period. Lower OI means traders are less confident in XRP’s ability to recover, making further declines more likely.
In addition, liquidations are rising. Over $15 million in long positions were wiped out in the last 24 hours, while short positions lost just $1 million. This shows a clear risk-off sentiment in the market.
Technical Indicators Point to Further Weakness
The Moving Average Convergence Divergence (MACD) signals selling pressure. At the same time, the Relative Strength Index (RSI) sits at 40, showing reduced buying activity. XRP is trading below the $3.00 level and the 50-day Exponential Moving Average (EMA), confirming a shift from bullish to bearish sentiment.
Key levels to watch include the 100-day EMA at $2.76, which could absorb some selling, and the 200-day EMA at $2.49, which may act as strong support. A rebound above $3.00 could revive retail interest and push the token toward its $3.66 record high.
XRP Outlook
September starts with challenges for XRP. Weak fundamentals, falling on-chain activity, and bearish technical signals suggest more downside risk. Still, a short-term rebound is possible if buyers regain control above $3.00, offering hope for a renewed upward trend.
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