On March 19, the US SEC officially ended its four-year-long lawsuit against Ripple, sparking a surge in XRP network activity. On the same day, the number of active addresses that traded the token skyrocketed to a year-to-date (YTD) high, reflecting heightened investor interest.
However, this momentum has turned short-lived, as on-chain data reveals a steady decline in active wallet count since then.
XRP Demand Fades as Post-Lawsuit Hype Dies
On March 19, Ripple announced that the SEC had officially dropped its four-year-old lawsuit against the payment services company. This led to an immediate spike in the demand for the altcoin, reflected by its high active address count on that day.
According to Glassnode, this climbed to a year-to-date high of 626,854. However, as the post-lawsuit hype wanes, XRP demand has fallen. By March 23, its active address count had plummeted to a 30-day low of 54,704, highlighting the weakening buying pressure in the market.
A decline in an asset’s active address count suggests reduced transaction activity and waning buying interest. This is a bearish signal, as it signals declining liquidity, weak investor participation, and decreased utility for XRP.
In addition, on the price chart, XRP remains below its Super Trend Indicator, signaling continued bearish pressure in the market. As of this writing, this momentum indicator forms dynamic resistance above the altcoin’s price at $2.84.
The Super Trend indicator measures the direction and strength of an asset’s price trend. It appears as a line on the price chart, changing color to signify the trend: green for an uptrend and red for a downtrend.
When an asset’s price is below this indicator, the market is in a bearish trend. Traders interpret this as a sell signal or a warning to exit long positions and take short ones.
XRP Bulls Eye Recovery—Breaking $2.61 Could Trigger a Run Toward $2.84
XRP trades at $2.46 at press time, holding above the long-term support formed at $2.13. If bearish pressure climbs, the token could attempt to test this support.
Should it fail to hold, XRP’s price could plunge to $2, where another strong support lies.
Conversely, if buying activity gains momentum, the altcoin could attempt a break above the resistance at $2.61. If the breach is successful, XRP could climb toward its Super Trend indicator at $2.84.
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