XRP indicators are showing a shrinking user base and reduced real-world activity on the XRP Ledger network.
According to Santiment data, XRP’s daily transactions dropped to just 187,000 on May 28, down from over 2 million three days prior. Network growth dropped to 761 new addresses, marking a 72% decline from its March average of 2,700.
Similarly, 30-day active addresses fell to 426,000, down over 60% from the 1.1 million seen earlier in the year.
Exchange Inflows Jump 40%, Hinting at Mounting Sell-Side Risk
Exchange metrics point to growing sell-side pressure in XRP markets.
XRP inflows to Binance have surged, while outflows remain relatively flat. Over the past two weeks, exchange inflows rose more than 40%, suggesting that more holders are moving tokens onto exchanges, typically a bearish signal. Meanwhile, outflows rose only marginally, indicating limited accumulation behavior.
XRP futures activity remains elevated. Open interest continues to hover above $6.5 billion. Funding rates turned positive on May 22 and currently stand at +0.012%, suggesting that long-position holders are paying to maintain exposure — a reflection of bullish sentiment in derivatives markets.
However, the divergence between trading behavior and network utility may point to a fragile structure. Without renewed transactional demand or network adoption, XRP’s current price range may not hold.
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XRP Tests Triangle Support at $2.20
Technical indicators suggest XRP is nearing a decision point.
On the 4-hour chart, the token has formed a descending triangle pattern, with the horizontal base near $2.20 acting as support and lower highs forming the downtrend resistance. The relative strength index (RSI) currently reads 42, indicating weakening momentum and approaching oversold territory.
A breakdown below the $2.20 support level could trigger further losses toward the $1.85–$1.90 range. If the pattern fails to resolve lower, a bullish breakout above $2.40–$2.50 resistance could lead to a recovery toward the $2.80 level.
One potential price-stabilizing factor is the behavior of large holders. Santiment data indicates that wallets holding between 1 million and 10 million XRP have increased their balances throughout May. These whales typically accumulate during periods of consolidation and tend to act on long-term conviction rather than short-term volatility.
While such accumulation may provide some structural support, it appears insufficient to offset weakening demand from smaller investors and reduced transactional volume across the network.
