XRP is under pressure after a brief midweek rally, falling to $2.53 on Thursday. The token had reached a high of $2.65 on Wednesday, but rising long liquidations and declining network growth have cast doubt on a sustained move toward the $3.00 level.
XRP loses momentum after $2.65 peak
XRP surged from $2.12 to $2.65 over two weeks, tracking broader crypto market gains. But that momentum is fading. As of this morning, XRP trades at $2.53, marking a modest decline amid reduced investor engagement on the XRP Ledger.
According to Santiment, active addresses on the network dropped from nearly 16,000 in January to 3,400 on May 7—a 78.7% decrease in network growth. This signals falling demand and weaker participation, both of which are bearish indicators.
Liquidations surge as traders unwind positions
Derivatives data from CoinGlass shows $10.14 million in total XRP liquidations over the past 24 hours. Long positions accounted for $8.44 million, highlighting that bullish traders were caught off guard by the pullback.
Open interest also declined by 1% to $5.41 billion, while trading volume fell to $8.69 million from $19.5 million earlier this week. These metrics reflect a cooling in speculative activity and thinner liquidity, potentially increasing short-term price volatility.
Support levels to watch amid technical pullback
Despite the pullback, XRP remains above its key technical supports—the 50-day, 100-day and 200-day exponential moving averages (EMA). These levels, sitting at $2.27, $2.25 and $2.00 respectively, could serve as safety nets if selling pressure increases.
Technical indicators offer mixed signals. The MACD remains in bullish territory, backed by green histogram bars, suggesting momentum still favors the upside. However, the Relative Strength Index (RSI) has dropped to 63.34 and is trending toward the neutral 50 mark—indicating weakening bullish strength.
Can XRP still hit $3?
XRP’s ability to reclaim and hold higher levels will depend on whether buying pressure returns and if network activity stabilizes. As of now, the loss of upward momentum and significant long-side liquidations are key hurdles.
Market optimism from macro developments—including a 90-day trade truce between the U.S. and China and a new U.S.-U.K. trade deal—could provide some support for risk assets, including crypto. But without renewed demand on the XRP Ledger, a near-term move to $3 remains uncertain.
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