Why is the price of XRP at risk of falling 20% to $1.7?

The price of XRP is currently trading 18% lower than the peak in May at $2.65, and much data signals the risk of a fall to the level of $1.70.

The inverted V pattern of XRP suggests a 20% fall

The price volatility of XRP from April 7 to June 2 has formed an inverted V pattern on the daily chart.

Previously, XRP had a strong recovery, increasing 62% from the low of $1.61 but was halted by selling pressure at the resistance level of $2.65.

The bear faction has taken profits after this rally, leading to a sharp adjustment to the current price level. The relative strength index (RSI) is also trending downwards, sliding from 68 to 41 since May 12 – indicating that the downtrend is intensifying.

Daily XRP Price Chart | Source: TradingViewAs the price approaches completing the inverted V pattern, XRP may continue to fall to the support area around $1.72 – corresponding to a decrease of about 20% from the current price.

Analyst MasterAnanda on TradingView also shares a similar view, stating that the weakening uptrend combined with being rejected at important support levels is causing XRP to face the risk of falling below the $2 mark.

Your recent analysis shows that XRP has broken the upward price channel, with three consecutive daily closing sessions below the lower trendline of the channel.

"It seems like XRP will recover at any moment, but the fall momentum continues to strengthen. This correction may not be over yet," the analyst stated, adding that this altcoin could continue to fall until it reaches the support area around 1.72 dollars.

XRP Daily Price Chart | Source: TradingView/MasterAnanda## XRP Bearish Divergence

The fall of XRP is reinforced by the increasingly clear bearish divergence between price and RSI.

The daily chart below shows that the price of XRP has risen from November 2024 to June 2025, creating higher lows.

However, during the same period, the RSI index on the weekly timeframe fell from 92 to 51, forming lower lows – as shown in the weekly chart below.

Weekly XRP Price Chart | Source: TradingViewDivergence between rising prices and falling RSI often indicates a weakening of the current uptrend, prompting traders to take profits at local peaks as buyer fatigue increases.

The chart above also shows that XRP is facing a strong resistance area from $2.5 to $2.65. Selling pressure from this area may continue to suppress the price of XRP in the coming weeks.

The network activity of XRP Ledger falls

The network activity of the XRP Ledger has fallen significantly over the past two months. According to on-chain data from Glassnode, the number of active daily addresses (DAA) on the network is currently much lower than this year's peak — 608,000 addresses, recorded on March 19.

As of the time of writing, there are only about 31,200 active addresses each day, indicating that user transactions have fallen sharply — which may be a sign of declining interest or confidence in the short-term prospects of XRP.

Daily active address of XRP | Source: GlassnodeThe number of new addresses has also fallen from the peak of 2025, which was 15,800 addresses per day, to about 4,400 at the present time, reflecting the level of network adoption and user interaction is declining.

A decrease in network activity is often a signal that prices are about to stabilize or fall, as low trading volume reduces liquidity and buying momentum.

Dinh Dinh