- XRP falls 1.94% to $2.75 as risk-off sentiment hits crypto markets.
- Active addresses drop from 50K in July to 19K, showing weak demand.
- $2.70 support is key; losing it could send XRP down toward $2.08.
XRP extended its recent downturn on Monday, with the token slipping 1.94% over the past 24 hours to trade at $2.75.
The decline builds on last week’s sharp sell-off and comes amid broader weakness across the cryptocurrency market.
Analysts suggest that falling onchain activity and reduced investor appetite are weighing on the altcoin, though a potential rebound remains possible if key support levels hold.
Investor sentiment and onchain activity weaken
The latest pullback in XRP comes against a backdrop of declining risk appetite in the digital asset market.
The Crypto Fear & Greed Index has fallen into the “fear” zone at 46, down from “neutral” last week and “greed” a month ago, according to data from Alternative.me.
This shift highlights growing investor caution after months of strong price action.
On-chain metrics reinforce the risk-off mood.
Active addresses on the XRP Ledger have dropped sharply, falling to around 19,250 on Monday compared with roughly 50,000 in mid-July.
Active addresses track the number of wallets sending or receiving XRP, and the steep decline indicates waning participation and lower transaction activity.
Futures market data paints a similar picture.
Open interest in XRP derivatives has contracted to $7.7 billion from $10.94 billion in recent weeks, underscoring a lack of conviction among traders.
Reduced open interest often signals weaker speculative demand, potentially amplifying downside risk in the short term.
Technical picture hinges on $2.70 support
From a technical perspective, the XRP price is testing critical support at $2.70.
The token has been consolidating within a descending triangle pattern since rallying to a multi-year peak of $3.66 in July.
This bearish formation is marked by a flat support line and descending resistance trendline.
If bulls can defend the $2.70 threshold, XRP could attempt a recovery toward the upper boundary of