.png){kind=logo}
XRP fell 1.36% to $1.39 over 24 hours on May 8, trailing a weaker crypto market as fading on-chain activity weighed on sentiment. The decline came even as Ripple-linked institutional activity and RLUSD growth kept market attention. Bitcoin also slipped 0.78%, adding pressure across major digital assets.
Glassnode data indicated that daily new addresses on the XRP Ledger fell from about 18,000 in December to 2,700 on May 7. This marks an 85% decline and the lowest level in 18 months. Monthly active supply also dropped, pointing to lower user activity across the network.
The fall points to weaker retail and speculative demand. Additionally, lower user growth has limited buying strength in the spot market, even as institutional use cases remain active.
Meanwhile, XRP price has struggled to hold above the $1.40 area despite positive headlines around tokenized finance. The token fell below an ascending trendline and the 100-period moving average at the same time.
XRP briefly reached about $1.45 after reports of a Ripple, JPMorgan, and Mastercard pilot involving a tokenized Treasury settlement. The transaction reportedly settled in under five seconds, drawing attention to tokenization use on blockchain rails.
However, the price later pulled back in a “sell the news” reaction as traders took profit after the announcement. Furthermore, the move came during a softer market session, which made it harder for XRP to keep momentum.
Derivatives data also pointed to weak speculative demand. XRP perpetual volume on Binance reached $372 million on May 7, according to CryptoQuant. This level stood above the $242 million recorded on October 25, 2024, but remained near a low historical range.
The data suggests the drop did not come from heavy leveraged selling. Instead, buyers appeared to step away after key support levels failed. Therefore, recovery may depend on fresh demand rather than short covering.
Ripple USD, known as RLUSD, continued to expand even as XRP traded lower. The stablecoin’s market cap reportedly moved above $1.55 billion after standing near $1.24 billion on March 31. This reflects an increase of about $310 million in seven weeks.
The growth comes as major financial firms pay closer attention to stablecoin payments. BlackRock recently said stablecoins could help payment systems if proper rules are in place. Additionally, Ripple’s work with KBank in South Korea kept its payment network in focus.
RLUSD growth has added another point of interest around Ripple’s wider ecosystem. However, XRP price action has not yet followed the same direction. Network activity remains weak, while traders continue to watch whether stablecoin demand can support broader market confidence.
XRP remains compressed between support near $1.40 and resistance near $1.45. A daily close above $1.45 could reopen a move toward higher levels while a break below $1.40 may expose the $1.35 area.
Technical data also places the 50-day moving average near $1.40 as a key pivot. The RSI reading near 32 points to weak momentum, although it does not confirm a strong rebound.
For now, XRP’s outlook remains neutral to bearish until stronger demand returns and price reclaims $1.45. ETF demand remains another watch point, with reported holdings now locking a record 1.26% of XRP supply during weaker network activity.
However, retail demand has not filled the gap left by falling address growth. This keeps $1.40 and $1.45 as the main levels for the next XRP price move.
Also Read: XRP News Today: Ripple Unlocks 1 Billion XRP as CEO Defends Long-Term Token Strategy in Vegas
