XRP Faces Potential Drop to $0.80 Amid Cooling Network Activity and Whale Selling

XRP is currently navigating a bearish landscape, with a prominent cryptocurrency analyst, Ali Martinez, highlighting several on-chain indicators that suggest a potential decline to the $0.80 mark. Despite trading around $1.86, crucial metrics point to weakening investor interest and significant selling pressure from major holders.

Active Addresses and Whale Movements Signal Caution

Martinez's analysis reveals a sharp decrease in XRP's network activity, with daily active addresses plummeting to approximately 38,500. This metric, which tracks unique addresses participating in transactions, often reflects fading interest and participation in an asset. Concurrently, large investors, commonly referred to as "whales," have shown a bearish sentiment. Recent data indicates that these influential holders collectively sold around 40 million XRP tokens, a move that could exert downward pressure on the price due to their substantial market impact. Such selling patterns from whales often signal diminishing confidence among key stakeholders.

Key Support Level at Risk

Further reinforcing the cautious outlook is the UTXO Realized Price Distribution (URPD). This indicator illustrates the price points at which various amounts of XRP supply were last purchased. Martinez points out that a significant portion of XRP's supply has a cost basis around the $1.77 level. This price acts as a critical support zone, meaning a substantial number of investors acquired their tokens around this price. Should XRP break below this $1.77 support, a cascading effect of selling could ensue, potentially opening the door for a drop to the next major support zone, which Martinez identifies near $0.80. The analyst underscores that if current selling pressure persists and the $1.77 support fails, the path to $0.80 becomes a distinct possibility.