XRP’s Network Shrinks: A Warning Signal for Investors?

While the XRP price remained largely unchanged this week, recent data reveals a concerning trend in the network activity. Analyst Ali Martinez highlighted on X (formerly Twitter) that daily creation of new XRP addresses has experienced a significant decline over the past month. This sharp drop from over 5,200 addresses to just around 2,900 marks a reduction of nearly 44% within a single month. 5,200 to just 2,900. The corresponding price decrease is also noteworthy: XRP has dropped from approximately $2.45 to just over $2.05, a decline of around 15%. This disproportionate decline in new user activity compared to price movement suggests deeper issues with market sentiment. Analysts believe this trend could signal the early stages of a downward price trend for XRP. While a price drop below $2.00 and potentially as low as $1.85 is possible if the trend persists, it might also signal an opportunity for renewed investor interest and a price rebound to the $2.30-$2.50 range if network activity picks up again. The decline in new addresses, however, raises concerns about long-term stability and growth. This hidden trend could indicate that while the market is currently volatile, it may be hinting at a larger shift in investor sentiment.