XRP's price downtrend could continue: Here's 4 reasons why
21.08.2025
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XRP data highlights investor profit-taking and reveals reasons why the altcoin's price could continue to fall.
XRP Price Drop To $2.40 Possible According To Onchain Data
XRP is trading 23% below its multi-year peak of $3.66, and a convergence of onchain and technical data signals a potential drop to $2.40. Here's the breakdown in Gen Z terms—brace yourselves, bagholders.
- • XRP confirms a bearish descending triangle on the daily chart, risking an 18% drop to $2.40.
- • Declining daily active addresses signal reduced transaction activity and cooling demand for XRP.
- • Spot taker CVD remains negative, suggesting waning investor demand.
Data from Cointelegraph Markets Pro and TradingView shows XRP trading below a descending triangle—a classic bearish pattern with a flat support line and a downward-sloping resistance. Price broke below $2.95 support, targeting $2.40. That's an 18% nosedive from current levels. Ouch.
As Cointelegraph reported, XRP needs to reclaim $3 to avoid a deeper correction to $2.24. Last time it did that in mid-July and early August, it sparked 25% and 15% rallies. But this time? Not looking good.
XRP/BTC Bearish Divergence
XRP/BTC pair shows a nasty bearish divergence with the RSI. While the price made higher lows from July 10 to Aug. 18, the RSI dropped from overbought 75 to 43. That's a red flag—weakness in the uptrend, profit-taking galore.
XRP/BTC is clinging to support between 0.0000245 BTC and 0.0000250 BTC, hugged by the 200-day SMA. A break below this could send it spiraling further down.
Declining Network Activity Could Amplify XRP Sell-Off
Onchain data from Glassnode reveals daily active addresses have plummeted. From peaks of 608k in March and 577k in June to just 33k now. That's a massive drop in user engagement—fewer transactions, less hype.
Transaction count is down 51% from 2.5 million in June to 1.25 million. Lower activity means reduced liquidity and buying momentum, often a precursor to price stagnation or drops.
Negative 90-Day CVD Backs XRP's Downside
The 90-day spot taker cumulative volume delta (CVD) has been negative since July 28, after XRP hit multi-year highs above $3.66. Negative CVD means sellers are dominating—profit-taking is real, and demand is fading.
With over 91% of XRP supply still in profit, investors might keep cashing out, adding more downward pressure. If CVD stays red, expect another leg down.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
#Ripple#XRP#Cryptomarket analysis#Cryptocurrency Price Prediction#Technical analysis
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