Ripple [XRP] is stuck in a holding pattern, with price action losing steam as network activity declines.

Ripple [XRP] price action is losing steam as network activity declines and technical indicators point to fading momentum.

While a slight rise in developer engagement offers a glimmer of hope, on-chain metrics and technical indicators suggest that the token could continue drifting lower in the short term.

Network pulse fades as user and whale activity collapses

XRP’s recent price stagnation coincides with a broader slowdown on the XRP Ledger. According to Santiment, daily active addresses have plunged to just over 40,000, a dramatic decline from March’s peak of 612,000.

This marks the weakest point for the network since November 2024, as user engagement has dropped sharply.

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In addition, large transactions over $100,000 have decreased by a third since March highs, indicating that whale activity has also weakened.

Despite this, developer activity on the XRP Ledger has sharply accelerated.

GitHub data shows a 196% surge in contributions over the past 30 days. This is a strong indicator that behind the scenes, momentum is quietly building.

This uptick coincides with the debut of two new protocols, Vaultro Finance and XpFinance, which both launched on the 5th of May.

Their arrival suggests a growing interest in DeFi infrastructure on XRPL. Meanwhile, Ripple's recent acquisition of prime brokerage firm Hidden Road signals deeper institutional ambitions.

XRP struggles in a tight range

At press time, XRP was trading at $2.07, locked in a narrow range at the lower Bollinger band and below its 20-day moving average.

The RSI at 42.83 showed weak momentum, edging close to the oversold threshold without triggering a recovery. Volume remained muted, further highlighting the lack of buying pressure.

Since early April, the token has struggled to break above the $2.30 resistance or find strong support below the $2.00 level, highlighting a period of indecision.

Unless bulls can reclaim the mid-Bollinger level, XRP looks set to continue drifting sideways, with potential downside risks if broader market sentiment deteriorates.