XRP traded down 1.36% to near $1.39 on May 8, as an 85% drop in new XRP Ledger addresses to an 18-month low eroded market sentiment. This decline trailed a broader crypto pullback, with Bitcoin falling 0.78%, yet XRP struggled most against fading on-chain demand. Weak network metrics overshadowed Ripple's institutional advances, leaving the token pinned below $1.45 resistance.
Network Activity Hits 18-Month Trough
Glassnode data shows daily new XRP Ledger addresses plummeted from 18,000 in December to 2,700 on May 7. Monthly active supply followed suit, signaling reduced user engagement across the network. This 85% contraction reflects waning retail and speculative interest, which has sapped spot market buying power despite persistent institutional involvement in Ripple's ecosystem.
XRP's price action mirrors this slowdown. The token slipped below an ascending trendline and the 100-period moving average, failing to defend the $1.40 zone amid positive tokenized finance news. Lower address growth limits upward momentum, as fresh participants fail to offset profit-taking.
Institutional Pilots Spark Brief Rally, Then Fade
A reported pilot with Ripple, JPMorgan, and Mastercard for tokenized Treasury settlement pushed XRP to $1.45. The transaction cleared in under five seconds, highlighting blockchain efficiency for financial rails. Traders reacted with a "sell the news" pullback, erasing gains in a softer market environment.
Derivatives activity underscores subdued speculation. Binance perpetual volume hit $372 million on May 7, up from $242 million in late October 2024 but still in a low historical range, per CryptoQuant. The absence of heavy leveraged selling points to buyer hesitation rather than aggressive shorts, tying recovery prospects to renewed demand.
RLUSD Expansion Sustains Ripple Spotlight
Ripple USD (RLUSD) market cap climbed above $1.55 billion from $1.24 billion on March 31, adding $310 million in seven weeks. This growth aligns with rising stablecoin interest from firms like BlackRock, which sees potential in regulated payment applications, and Ripple's partnerships such as with KBank in South Korea.
RLUSD's momentum bolsters Ripple's payment network profile, yet XRP price decouples from it. Stablecoin adoption signals enterprise confidence, but retail network weakness caps spillover effects on the token.
Support Levels Define Narrow Path Ahead
XRP trades in a tight range, with $1.40 support and $1.45 resistance in focus. A daily close above $1.45 could target higher levels, while a drop below $1.40 risks $1.35. The 50-day moving average at $1.40 acts as a pivot, and RSI near 32 indicates subdued momentum without oversold extremes.
ETF holdings now secure a record 1.26% of XRP supply, yet falling address growth highlights retail disengagement. Broader fintech trends in tokenization and stablecoins keep Ripple relevant, but XRP's neutral-to-bearish stance persists until demand revives and $1.45 breaks.
