XRP has dropped below critical support levels at $2.00 and $1.90, turning both into resistance zones as network activity declines and whale investors continue selling. Analyst Ali Martinez warned that the token faces a potential 55% decline based on current market conditions.
What Happened: Network Decline
Active addresses on the XRP network have fallen from 46,000 to under 39,000 within several days, according to Martinez, who has more than 160,000 followers on X.
The decline in network activity coincides with the holiday season, when investor participation typically decreases.
Whale investors have sold more than 40 million XRP in recent days, continuing a two-month selling trend that began in November when spot XRP exchange-traded funds launched in the U.S.
Large holders disposed of nearly 1.5 billion tokens in less than a month during the initial ETF launch period.
Also Read: Ethereum Network Activity Reaches Record High While Active Addresses Surpass 275 Million
Why It Matters: ETF Strength
The five spot XRP ETFs have attracted $1.15 billion in net inflows since Nov. 13, outperforming Bitcoin, Ethereum and Solana ETF counterparts, according to SoSoValue data.
No single trading day has recorded net outflows since the funds began trading.
Sustained or increasing inflows could provide support for XRP's price despite the ongoing whale selling pressure and declining network metrics.
Read Next: ZCash Climbs Past $500 As Whale Holdings Jump 47% Despite Market Weakness