XRP Price Analysis: 45% Drop Risk — Here's Why

Is XRP Price in Danger of a Significant Decline?

The XRP price is currently facing the risk of a 45% drop to $1.20, according to technical analysis indicators. The formation of a bearish descending triangle on the daily chart is causing concern among investors, signaling a potential trend reversal.

XRP Descending Triangle Pattern

Since its rally in late 2024, XRP has been forming a descending triangle pattern on its daily chart. This pattern typically indicates a bearish trend, especially after a strong uptrend. In this case, if the price breaks below the support level of the triangle, it could lead to a significant decline, possibly down to $1.20.

Implications of Declining Network Activity

Another cause for concern is the declining network activity of XRP. Daily active addresses on the XRP Ledger have dropped significantly compared to the first quarter of 2025. This decline in transaction activity could signal reduced interest or confidence in XRP's future performance.

Historically, decreases in network activity have been linked to price stagnation or drops, as lower transaction volume reduces liquidity and buying pressure. This, combined with the bearish technical pattern on the price chart, paints a bleak picture for XRP in the near term.

Potential Recovery Scenario

Despite the current challenges, there is still hope for XRP to reverse its fortunes. A breakout above the resistance line at $2.18 could invalidate the bearish pattern and pave the way for a rally towards the psychological level of $3.00. However, this scenario is contingent on overcoming the current downward pressure.

Conclusion

In conclusion, the XRP price is facing significant downside risks, with a potential 45% decline to $1.20 looming on the horizon. The combination of a bearish technical pattern and declining network activity paints a worrisome picture for XRP investors. It remains to be seen whether the cryptocurrency can overcome these challenges and stage a recovery in the coming weeks.