Active Addresses Halved and Fund Capital Flees! XRP Trapped in a Mountain of Troubles!

▲ Ripple (XRP) ©

Amid declining on-chain activity and capital outflows from spot exchange-traded funds (ETFs), XRP (Ripple) is trapped in a narrow range between $1.30 and $1.40, losing direction and continuing its sideways movement.

According to investment media outlet FXStreet on April 10 (local time), XRP is currently trading around $1.34, with market attention focused on the ceasefire talks between the U.S. and Iran to be held in Pakistan over the weekend. Despite an interim ceasefire being reached early this week, the Crypto Fear & Greed Index remains at 16, indicating extreme fear. This suppressed investor sentiment reflects investors' distrust in the sustainability of the market's recovery and explains why XRP failed to break the $1.40 resistance last Tuesday.

On-chain metrics indicating network activity are also experiencing a clear downturn. According to CryptoQuant data, the number of active addresses participating in transactions by sending or receiving assets on the XRP Ledger (XRPL) decreased from approximately 18,000 on Wednesday to around 16,000 on Thursday. This contrasts sharply with last Sunday, when the number of active addresses surged to 32,000, leading to Tuesday's rise to $1.40. Unless such on-chain activity recovers, the price is likely to remain confined within a limited narrow range for the time being.

As institutional investors' risk aversion deepens, XRP spot exchange-traded funds are also struggling. Despite capital inflows into Bitcoin (BTC) and Ethereum (ETH) spot funds on Thursday, U.S.-listed XRP funds experienced a net outflow of approximately $661,000. Currently, the cumulative inflows into XRP spot funds amount to $1.21 billion, with average net assets under management at around $955 million.

From a technical analysis perspective, a short-term bearish bias is clearly evident. XRP's price is firmly positioned below key moving averages, including the 50-day exponential moving average (EMA) at $1.42, the 100-day EMA at $1.57, and the 200-day EMA at $1.83, indicating that the overall upward trend is suppressed. While the Moving Average Convergence Divergence (MACD) on the daily chart shows a slightly positive signal and the Relative Strength Index (RSI) hovers around the neutral level of 45, this suggests consolidation within a range rather than a significant rebound.

Should XRP attempt a rebound in the future, $1.40 is expected to act as the primary resistance level, and if surpassed, the exponential moving averages at $1.42 and $1.57 will successively impede further ascent. Conversely, with a lack of firm technical support levels on the downside, the risk of further declines remains open, prompting traders to closely monitor the $1.30 defense line, which represents the recent swing low and could serve as a clear bottoming signal.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*