- The number of active XRP addresses has dropped by over 90% since March 2025.
- This pattern reflects similar trends seen near previous market tops in 2017 and 2021.
- Technical indicators suggest a possible 25% decline toward support at $1.76.
- Recent investor activity shows increased sensitivity to price corrections.
More than 70% of XRP’s realized market capitalization was built up between late 2024 and early 2025, according to on-chain data. This period saw a sharp increase in the value of XRP as the price rallied, raising concerns about market stability.
On-chain analysis from Glassnode shows that the realized cap for coins held between 3 to 6 months surged after January 2025, when XRP reached nearly $3.40. This suggests many tokens changed hands during the price run-up. Experts warn that such a “top-heavy” pattern, where a large share of the realized value comes from short-term holders, may put the market at risk if prices drop.
The number of active XRP addresses—wallets sending or receiving funds—spiked sharply in March 2025 but has since dropped by over 90%, according to Glassnode. This kind of divergence between price increases and falling activity was also seen before major declines in late 2017 and early 2021.
Technical analysis of XRP’s weekly chart indicates the price is stuck inside a falling wedge pattern. If the trend continues, XRP could drop another 25% toward the $1.76 support, aligning with the 50-week exponential moving average.
Previous cycles in 2017 and 2021 featured a rapid rise in realized cap from newer holders followed by steep declines—95% and 80%, respectively. The present conditions, with decreased network activity and crowded short-term investment, mirror these historical patterns and suggest a cautious outlook for the coming months.
This article contains no investment advice. Readers should do their own research before making financial decisions.
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