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Ripple’s XRP experienced a fleeting boost in network activity following a recent legal victory, but the enthusiasm appears to be waning.
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The SEC lawsuit dismissal sparked initial optimism, yet XRP’s momentum has significantly slowed alongside a decrease in whale investments.
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According to Glassnode, the spike in active addresses was short-lived, declining sharply from its post-ruling peak, showcasing potential market hesitations.
Ripple’s XRP saw a temporary surge in network activity after a legal victory, but recent data show a concerning decline in both interest and whale transactions.
XRP Activity Slumps as Post-Lawsuit Hype Fades
Following the U.S. SEC’s dismissal of its lawsuit against Ripple on the 19th of March, XRP saw a sharp spike in network activity, with active addresses hitting a year-to-date high of 626,854. However, fresh data from Glassnode reveals that this surge was short-lived.
Source: Glassnode
The chart reveals that XRP’s active address count reached its peak on March 19 but has since sharply declined. By the 23rd of March, activity fell to approximately 50,000 addresses, a level not observed in over a month. This significant drop indicates that the excitement from the legal victory did not lead to sustained adoption or buying momentum.
The pattern of rapid spikes followed by swift declines suggests speculative trading rather than consistent long-term accumulation, raising doubts about XRP’s underlying demand.
Whale Activity Remains Subdued
XRP experienced a short-lived surge in network activity after the SEC lawsuit dismissal, but large investors seem hesitant to engage.
Santiment’s on-chain data shows a notable increase in whale transactions from the 19th to the 20th of March, aligned with the market’s initial response to the lawsuit resolution.
However, whale activity has since declined. The absence of consistent large transactions indicates that major investors are neither accumulating nor offloading XRP significantly.
Source: Santiment
After the 21st of March, whale transactions became sporadic, with no clear trend of accumulation or distribution. While occasional spikes occurred, they did not indicate any decisive movement from large holders.
Despite fluctuations in XRP’s price, the absence of increased whale activity signals hesitation, reinforcing the notion that the post-lawsuit rally was more of a short-term reaction than a catalyst for sustained momentum.
XRP Struggles to Gain Momentum Amid Resistance
XRP was trading at $2.4387 at press time, down 0.47%, as its post-lawsuit rally loses steam. The RSI sat at 54.71, signaling neutral momentum, with buying pressure failing to push it above 60.
The MACD line remained slightly above the signal line, suggesting weak bullish momentum, though a bearish crossover could emerge if price action softens.
Source: TradingView
XRP faces resistance at $2.60, a level it has struggled to breach. Meanwhile, support lies between $2.20 and $2.30 – a break below could invite further downside.
The price remains range-bound, with neither bulls nor bears taking control. A decisive move above $2.60 could reignite upside momentum, while failure to hold $2.30 may signal further weakness in the coming days.
Conclusion
In summary, Ripple’s XRP is currently navigating through a phase of uncertainty after a legal victory. The initial post-lawsuit enthusiasm has quickly diminished, and recent activity trends indicate a lack of confidence from both retail and whale investors. As market watchers monitor key resistance levels, future price movement will heavily depend on the overall sentiment in the crypto market and potential recovery trends in XRP’s trading behavior.
