XRP Can’t Make You a Millionaire From a $1.70 Grave

XRP (XRP-USD) is trading around $2.14 — but if you’re holding out for millionaire dreams, brace yourself. Technical signals, slumping network activity, and fading momentum all point to one cold number: $1.70. And it’s not just the charts whispering it anymore — on-chain data is practically shouting from the grave.

XRP Slips Into a Technical Trap

Let’s start with the pattern on the daily chart. XRP’s recent price action has carved out an inverted V-shape — a move traders often associate with sharp reversals. The asset had a strong run, surging 62% off a $1.61 base to $2.65, but it couldn’t punch through that $2.65 resistance.

Now it’s losing altitude fast.

The Relative Strength Index (RSI), a key momentum gauge, has dropped from 68 to 41 in just a few weeks. That’s a red flag. It suggests buying energy is draining away. According to analyst MasterAnanda on TradingView, XRP has not only broken below a rising channel — it’s had three daily closes below that trendline, a technical sign of lost momentum. He warned that XRP could tumble to the $1.70 region, where stronger support might kick in.

XRP’s Divergence Shows Price Is Out of Sync

The divergence between XRP’s price and RSI over the past few months is especially concerning. While XRP’s price has made higher lows since November 2024, RSI has been sliding lower — from 92 to 51 on the weekly chart.

This kind of divergence is a classic warning: prices may be rising, but under the surface, buyers are pulling back. It’s like trying to sprint up a hill with an empty tank.

XRP Ledger Activity Tanks

Now zoom out from price and look at the network. Daily active addresses — a rough proxy for real user engagement — have fallen off a cliff. From a peak of over 600,000 in March, XRP Ledger is now seeing just over 31,000 active addresses daily. That’s a 95% collapse in just a few months.

Even new addresses, which often signal growth or fresh investor interest, have dropped to around 4,400 from 15,800. That’s a big problem for supply-and-demand dynamics. Fewer users = fewer transactions = less buying pressure. And with XRP’s circulating supply already in the billions, it takes serious demand to move the needle.

How This Plays into XRP’s Broader Setup

From a macro view, this slump is a mix of technical overextension and fading sentiment. When prices spike hard and fast, profit-taking almost always follows. Add in the fact that regulatory clouds still hang over XRP — especially in major markets like the U.S. — and you’ve got a recipe for cautious trading.

At a micro level, the story is about exhaustion. Less activity, weaker conviction, fewer new users — it all feeds into lower volume, thinner liquidity, and more volatility. The path of least resistance, right now, is down.

Can XRP Bulls Stop the Bleed?

Possibly. The $1.70 region is a strong historic support level — and if XRP finds footing there, it could serve as a base for a new leg higher. But for that to happen, bulls need to show up with conviction. Not just on charts, but on-chain too. At the time of writing, XRP is sitting at $2.1441.