A combination of a confirmed bearish chart pattern, weakening momentum, and declining network activity points to a significant correction for XRP, with key support at $2.00 under threat.
XRP price has fallen 11% over the past week, and a convergence of technical and on-chain indicators suggests the downturn may deepen. Analysts are warning of a potential 25% decline toward $1.55 if current support levels fail to hold.
Descending Triangle Breakdown Points to Further Losses
The primary concern for traders is the confirmation of a bearish descending triangle pattern on XRP's eight-hour chart. This pattern, characterized by a flat support level and a descending resistance line, was activated when the price broke below the $2.20 support level.
The measured target for such a breakdown is calculated by subtracting the pattern's maximum height from the breakout point. This projects a downward move toward $1.55. The $2.00 level is now a critical psychological and technical support; a breach below it would likely accelerate the sell-off toward this target.
Further complicating the recovery, on-chain data from Glassnode reveals a massive supply wall between $2.38 and $2.40, where nearly 3.23 billion XRP were previously acquired. This zone, reinforced by the 100-day Simple Moving Average (SMA), now acts as a formidable resistance level.
Bearish Divergence and Weak Momentum Add Pressure
The bearish outlook is reinforced by a significant bearish divergence on the weekly chart. While XRP's price formed higher highs between November 2024 and July 2025, its Weekly Relative Strength Index (RSI) made lower highs, sliding from 92 to 68.
This divergence often signals underlying weakness in an uptrend, indicating buyer exhaustion and increasing profit-taking. The RSI has since fallen to 39, confirming that downward momentum is currently in control. Additionally, the 50-week SMA at $2.32 is now acting as a stiff resistance, capping any significant rebound attempts.
Network Activity Decline Signals Muted Interest
Underpinning the technical weakness is a stark decline in network activity on the XRP Ledger. Data from Glassnode shows that Daily Active Addresses (DAAs) have plummeted from a peak of 577,000 in mid-June to just 44,000 currently.
Similarly, the creation of new addresses has dropped to 4,000 per day from 13,500 in early November. This decline in user engagement and network adoption typically foreshadows price stagnation or further declines, as lower transaction volume reduces liquidity and buying pressure.
With the descending triangle pattern active, momentum indicators pointing down, and network activity muted, the path of least resistance for XRP appears to be downward. The battle at the $2.00 support level will be decisive in determining whether the asset can stabilize or continue its slide toward $1.55.
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.