XRP, left behind again...Warning of a fall to $1.3 despite network surge

▲ XRP

XRP has failed to establish a clear recovery trend despite increased network activity and spot ETF inflows. Although the number of active addresses on the XRP Ledger increased and institutional funds continued to flow in, the price remained below key resistance levels, unable to escape short-term bearish pressure.

FXStreet reported on May 21 (local time) that XRP's recovery stalled after showing a limited rebound from the $1.35 support level. While expectations for peace talks between the United States and Iran partially stimulated risk appetite across the market, XRP did not strongly follow the same trend. U.S. President Donald Trump stated that the two countries were in the final stages of peace negotiations but also raised global market caution by mentioning that the situation could worsen if Iran did not agree.

On-chain indicators confirmed increased activity. According to Santiment data, the number of active addresses on the XRP Ledger has been increasing since Monday, approaching 24,000 on Thursday. Active addresses are a metric that tracks the number of wallets sending or receiving assets on a network over a certain period. Consistent growth is interpreted as a sign of expanding user engagement and speculative interest.

Institutional fund flows also showed a moderate inflow. The XRP spot ETF recorded an inflow of $1.45 million on Wednesday, and cumulative inflows stabilized at around $1.39 billion. The average net asset value was presented as $1.13 billion. FXStreet analyzed that if the ETF's growth continues, it could be a key factor supporting short-term rebound sentiment for XRP.

However, the technical structure remained a burden. XRP stayed below major exponential moving averages and the recently broken uptrend line, maintaining a short-term bearish bias. The 50-day exponential moving average is at $1.41, and the uptrend line resistance is near $1.40, acting as immediate overhead supply. The 100-day exponential moving average at $1.48 and the 200-day exponential moving average at $1.70 formed stronger resistance zones.

The Relative Strength Index remained near 43, and the Moving Average Convergence Divergence (MACD) histogram was in negative territory. This suggests that rebound attempts are likely to be met with selling pressure. If XRP fails to reclaim the $1.40 and $1.41 levels, short-term downward pressure could continue.

If selling pressure overwhelms demand, XRP could retest the $1.35 support level, and a deeper correction could extend to $1.30. Although network activity and ETF inflows showed signs of improvement, the price structure still reflects resistance and selling pressure more strongly than recovery.

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