As per latest XRP news, the network activity has experienced a severe decline as active addresses decreased by half in between December and late February.

A substantial price decrease corresponds with declining user engagement together with reduced transaction activity in the network.

Glassnode data shows daily active XRP addresses dropped by half. The maximum count of active addresses on the network reached 203,250 in early December when prices were at $2.72.

The XRP domain experienced changes in active addresses between February 25 2025 and March 5 2025 because they fell to 101,169 while the market price dropped to $2.33.

Declining address activity throughout this period indicates decreasing XRP transaction interest. This potentially affects both network operation speed and overall use rate.

After experiencing spikes of user engagement in mid-January, the network activity declined because users were unable to maintain their increased participation level.

Participating addresses have decreased significantly likely because speculative investors stop making deals when market sentiment turns negative.

XRP Declines Ahead of Diminishing Network Activity

The dip in XRP’s price occurs parallel to decreased active addresses. According to data from CoinMarketCap XRP prices currently stand at $1.99.

This represents a more than 20% decrease within the past week. A 9% daily decrease also brought XRP’s market capitalization to $115.66 Billion. This demonstrates increased caution by investors.

The XRP price shows steady downward movement in its chart and price movements have fallen short of maintaining $2.20 resistance.

The mid-February recovery attempt from the token was short-lived as it has continued without successful upward maintenance.

The price of XRP currently approaching $1.95 positions support levels in a crucial role to forecast its upcoming movements.

XRP has achieved an essential support zone according to different market analysts known as the green box.

Other experts suggest that the token must respond from its present position.

The analysts suggest that the token faces major difficulties when sustaining a price under $2.

XRP News: Technical Indicators Point to Further Downside Risks

Price movements on Binance show a descending channel at present as XRP keeps getting stopped at decreasing peak levels.

The Relative Strength Index (RSI) in 4-hour chart presents a value of 23.16.

This marks a substantial undersupply for XRP since it falls below the 50 point benchmark.

An asset can stay oversold for multiple time frames when strong diminishing trends occur.

XRP will likely encounter additional support barriers near $1.80 provided the existing selling pressure continues.

Any buy-off signals demand confirmation through a price climb that surpasses $2.10 before demonstrating changing market momentum.

Decreasing on-chain activity has exacerbated the bearish outlook for XRP. This typically causes liquidity decline and price stagnation.

Market uncertainty causes the price decline combined with lower network participation.

As per latest XRP news reports, it has exhibited periods of intense user engagement, but evidence shows its user numbers have recently declined.

The decreased number of active token addresses might affect network throughput which may harm token demand throughout the short term period.