XRP dropped 1.36% to near $1.39 on May 8, dragged by an 85% plunge in new XRP Ledger addresses to 2,700-the lowest in 18 months. This weak on-chain activity eroded market sentiment even as Ripple's institutional efforts and RLUSD stablecoin expansion held attention. The token now tests $1.40 support amid broader crypto softness, with Bitcoin down 0.78%.
Network Activity Signals Fading Demand
Glassnode data shows daily new addresses on the XRP Ledger fell from 18,000 in December to 2,700 on May 7. Monthly active supply declined too, reflecting reduced user engagement. This drop highlights weaker retail and speculative interest, which has curbed spot market buying pressure despite ongoing institutional adoption.
XRP price action mirrors this trend. The token slipped below its ascending trendline and 100-period moving average, struggling to stay above $1.40. Lower network growth limits upward momentum, leaving traders cautious even with positive Ripple developments.
Institutional News Sparks Brief Rally, Then Pullback
XRP touched $1.45 after news of a Ripple pilot with JPMorgan and Mastercard for tokenized Treasury settlement, which cleared in under five seconds. Attention focused on blockchain's speed for financial rails. Yet profits triggered a "sell the news" retreat, amplified by a soft market.
Derivatives activity underscores limited speculation. Binance perpetual volume hit $372 million on May 7-above October's $242 million but still low historically, per CryptoQuant. No heavy leveraged selling drove the drop; instead, buyers retreated after support failed. Recovery hinges on renewed demand, not short covering.
RLUSD Expansion Contrasts XRP Weakness
Ripple USD (RLUSD) grew its market cap to over $1.55 billion from $1.24 billion on March 31-a $310 million rise in seven weeks. This reflects rising interest in stablecoins for payments, echoed by BlackRock's comments on regulated stablecoin roles and Ripple's KBank partnership in South Korea.
RLUSD bolsters Ripple's ecosystem but has not lifted XRP price. Weak network metrics dominate sentiment, as traders eye if stablecoin traction can build broader confidence.
Key Levels Shape Near-Term Path
XRP trades between $1.40 support and $1.45 resistance. A close above $1.45 could target higher levels; below $1.40 exposes $1.35. The 50-day moving average at $1.40 acts as pivot, with RSI near 32 signaling low momentum.
Outlook stays neutral to bearish without demand pickup. ETF holdings lock a record 1.26% of supply, yet retail has not offset address growth slump. Watch $1.40-$1.45 for the next move in this fintech-linked asset.
