XRP extended its decline after failing to hold the $1.55 resistance level less than ten days ago. The token traded near $1.33 in the latest session, marking its lowest price since April 13. The decline also pushed XRP’s market capitalization down toward $82 billion as the gap with BNB widened beyond $5 billion.
The crypto market also weakened. Bitcoin slipped to $75,000 for the first time in three weeks, while XRP recorded losses greater than many digital assets. The token dropped 14% from its recent local peak as bearish pressure accelerated across the market.
Analysts now monitor whale activity and macroeconomic indicators as traders search for signs of stabilization. Some market observers expect further downside if Bitcoin continues losing momentum.
Popular analyst Ali Martinez reported a sharp drop in large XRP transactions. Whale transfers above $1 million fell from 157 earlier this year to only 67 recently. The decline represented a 57.3% decrease in major network activity.
Martinez said the slowdown may indicate a compression phase for XRP. Large holders appear to have stepped back while the current trading range settles. The reduction in whale movement has also lowered immediate volatility across the network.
At the same time, analyst CW warned that XRP continues showing a growing number of short positions. The analyst stated that no reversal signals have appeared in the futures market yet. In a separate update, CW said XRP could slide further toward the $1.30 level.
CRYPTOWZRD also described XRP’s recent market structure as bearish. The analyst linked further downside risks to Bitcoin’s declining trend. As BTC weakens, traders continue reducing exposure to riskier digital assets.
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Despite falling prices, XRP recorded strong network growth earlier this week. Santiment reported that the XRP Ledger added 4,300 new wallets within one day. The figure marked the fourth-largest spike in network activity during 2026.
Santiment noted that sudden increases in wallet creation often appear before market reversals. Rising user activity can signal renewed interest even during periods of heavy selling pressure.
While short-term sentiment weakened, another analyst presented a broader bullish argument for XRP and the altcoin market. In a recent YouTube video, Moon Lambo linked economic expansion data to potential future crypto rallies.
The analyst pointed to the latest S&P Global U.S. Manufacturing PMI reading of 55.3 for May. Economists had expected a lower reading of 53.8.
The PMI reading remained above the 50 mark, which signals economic expansion. Moon Lambo referenced chart analyst Psychedelic, who linked PMI readings above 55 with previous crypto bull cycles in 2013, 2017, and 2020.
The analyst argued that expansion periods historically support stronger performances across altcoins. He also compared current market conditions with previous cycles involving gold, Bitcoin, and alternative cryptocurrencies.
According to the analysis, gold often rises first during economic contraction phases. After expansion begins, Bitcoin and altcoins usually gain momentum afterward.
Moon Lambo also pointed to on-chain activity and fund-flow trends on the XRP Ledger. The analyst said those signals may indicate interest from investors despite the recent correction.
XRP fell to a six-week low after losing key support near $1.55, while whale activity and market confidence weakened. Still, rising XRP Ledger wallet growth and macro signals may offer support if broader conditions improve. Traders now watch Bitcoin, short positions, and network activity for the next move.