XRP On-Chain Activity: Bullish or Bearish Signals?

Decoding XRP's on-chain metrics for bullish/bearish signals. Is the drop in wallet creation a red flag, or a healthy correction before a rally?

XRP's on-chain activity is sending mixed signals, sparking debate among analysts. Is the recent decline a cause for concern, or a prelude to a bullish surge? Let's dive in.

XRP's Tale of Two Narratives

Recent data paints a conflicting picture of XRP's health. On one hand, we see a significant drop in new wallet creation, raising concerns about fading interest. On the other, some analysts argue this is merely a correction after an unsustainable surge.

The Bearish Perspective: Fading Momentum?

According to Coin Bureau, XRP's momentum might be fading. They highlight an 80% drop in new wallet creation since January 2025. This decline in network activity suggests that XRP may struggle to revisit the $3 level anytime soon. The analyst suggests that without new users entering the ecosystem or existing ones increasing XRP’s on-chain activity, the conditions necessary for an immediate $3 price reclaim aren’t present.

The Bullish Counterpoint: A Healthy Correction

However, Moon Lambo, another crypto expert, pushes back against this bearish narrative. They argue that the decline in activity is a healthy correction after an abnormal spike driven by macro excitement. Pointing to Google Trends data showing a broader market cool-off, they suggest XRP is maintaining relevance and attracting steady engagement even during quieter times.

Technical Analysis: What the Charts Say

Looking at technical indicators, XRP is currently trading around $2.12. While it experienced a surge in volume, it's facing bearish pressure. A market poll showed XRP having 25.6% bullish interest, second to Cardano (ADA). The mixed signals from on-chain data and technical analysis create uncertainty.

Personal Take: Navigating the Noise

It's tough to say definitively whether XRP is poised for a bullish or bearish run. The decline in wallet creation is concerning, but the argument that it's a correction holds water. Also, the broader market sentiment plays a big role. The truth is, the market is always uncertain and it’s important to look at the broader market and not XRP in isolation.

Final Thoughts

So, is XRP heading to the moon or crashing back to earth? Only time will tell. But one thing's for sure: the XRP saga continues to be a wild ride. Buckle up, folks!