XRP’s network activity has taken a major hit, with active addresses plunging alongside the asset’s inability to push further toward the $4 mark.
Notably, the number of XRP’s active addresses peaked at 44,143 on July 21 on the weekly timeframe before dropping to just 24,644 by July 27, a 44.2% decline.
The drop followed a brief surge from 30,190 on July 20, indicating that the increase in user activity was short-lived, according to the latest on-chain data retrieved by Finbold from CryptoQuant.
At the same time, XRP’s price fell from $3.55 to $3.16, marking a 10.99% drop.
The sharp decline in active addresses signals weakening demand and network usage, eroding XRP’s price support.
With the asset breaking below $3.50, sentiment has cooled, and capital is shifting back to Bitcoin, stalling the broader altcoin rally.
XRP whale activity spooks investors
XRP’s recent loss of momentum has also been triggered by sustained whale activity. Investors were spooked after Ripple co-founder Chris Larsen moved around $140 million worth of XRP to exchange-linked wallets since July 17.
A total of 50 million XRP, worth approximately $161 million, was transferred, with most of it going to centralized exchanges. Meanwhile, 10 million XRP was split between two newly inactive wallets, raising speculation about strategic profit-taking.
While some view the move as routine, others warn it could have a significant market impact.
Adding to concerns, CryptoQuant contributor J.A. Maartunn cautioned that Larsen still holds over 2.5 billion XRP, worth nearly $9 billion, suggesting that further selling could exert additional downward pressure on the token.
As things stand, XRP will likely need support from the broader market to maintain its price above the $3 mark, especially as the asset continues to mirror Bitcoin’s trend.
However, further upside could emerge if the U.S. Securities and Exchange Commission (SEC) moves forward with approving a spot XRP ETF and brings the long-running case against Ripple to a conclusion.
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