94% drop in new wallets: XRP wallet creation has fallen from 30,641 in December to just 1,822 in May.
Legal clarity nears: Ripple and SEC are reportedly close to a settlement agreement.
ETF optimism rises: Speculation grows over a possible spot XRP ETF approval in 2025.
Price consolidation: XRP holds above $2.24 support, but short-term trend remains cautious.
Ripple’s decline has sparked concern over its ability to sustain bullish momentum above the crucial $2 mark. While legal progress and ETF speculation fuel optimism, the network’s organic growth appears to be stalling.
New XRP wallet creation is declining sharply. Based on data from XRP Scan and Finbold, daily wallet activations plunged from 30,641 on December 2nd to just 1,822 on May 25th, marking a 94.05% decline in less than six months.
XRP New Accounts Activated Chart
Source: XRP Scan
Analysts claim there’s waning retail interest despite recent bullish developments, noting:
“This contraction paints a troubling picture of organic user growth.”
The spike in wallet creation last December coincided with XRP’s breakout above the $1 mark after a prolonged consolidation phase.
Notably, this rally was buoyed by improving crypto sentiment and post-election regulatory optimism, pushing many users to re-engage with the XRP Ledger.
However, despite Ripple’s legal advancements, user growth has steadily faded, mirroring broader uncertainty in the altcoin market.
Ripple has made headway in its legal standoff with the U.S. Securities and Exchange Commission (SEC). A potential settlement, which is currently awaiting final court approval, could bring long-awaited clarity to XRP’s regulatory status.
Simultaneously, market chatter suggests the U.S. SEC might greenlight a spot XRP ETF in 2025. Such a move could introduce significant institutional capital to the ecosystem.
However, XRP still trades well below the $3 mark, with investors appearing reluctant to price in these developments until they materialize.
As of this writing, XRP trades around $2.28, down 2.87% in the last 24 hours and over 6% week-over-week, according to Finbold.
50-day SMA: $2.24
200-day SMA: $1.91
The broad spread implies a long-term bullish bias. Yet, XRP’s current price hovering near its 50-day SMA hints at short-term consolidation.
XRP 7 Day Price Chart
Source: Finbold
Pseudonymous analyst ‘RishHad‘ identifies the following levels as critical for XRP’s next move:
$2.24 – Minor support; current activity consolidates here.
$2.01 – Historical buying zone with consistent volume.
$1.91 – Crucial support. A breach could signal bearish reversal.
If bullish momentum returns, XRP could target a breakout between $3.20 to $3.60, provided resistance levels are cleared convincingly.
Despite favorable legal tailwinds and ETF optimism, XRP is locked in a tug-of-war between bullish potential and stagnating on-chain metrics.
More importantly, new user activity is declining, and price remains range-bound, prompting cautious sentiment from traders.
Despite everything else, however, with strong and resilient support levels and regulatory clarity potentially unlocking mainstream adoption, XRP’s long-term outlook remains compelling.
New wallet creation dropped 94% since December, suggesting reduced retail interest amid market uncertainty.
Yes, Ripple and the SEC are reportedly nearing a final settlement, pending court approval.
Speculation is rising about a potential spot XRP ETF approval by the SEC in 2025.
Important support levels include $2.24, $2.01, and a critical floor at $1.91.
XRP shows mixed momentum, trading near its 50-day SMA with possible consolidation before a breakout.
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