Remember back on March 19th? That’s when the US SEC officially wrapped up its long-running, four-year lawsuit against Ripple. The XRP network practically buzzed with excitement! In fact, the number of active addresses trading XRP exploded that day, hitting the highest point we’d seen all year. It was clear investors were paying attention.

But hold on a second—that initial burst of energy didn’t last. Looking at the on-chain data, it seems like the buzz has faded a bit. We’ve actually seen a steady dip in the number of active wallets since that peak.

XRP Demand Fades as Post-Lawsuit Hype Dies

Let’s rewind to March 19th. Ripple announced the SEC was finally dropping that lawsuit that had been hanging over them for four years. Understandably, this news sparked immediate interest in XRP, and we saw a big jump in people actively using the network on that very day.

Data from Glassnode shows us just how big that jump was. Active addresses reached a year-to-date peak of 626,854! However, as the initial excitement from the lawsuit news wore off, so did the demand for XRP. By March 23rd, just a few days later, the number of active addresses had tumbled to a 30-day low of 54,704. This drop really highlights that the buying enthusiasm in the market is weakening.

Now, a drop in active addresses for any asset is generally a sign of trouble. It suggests fewer transactions are happening and, more importantly, that buying interest is declining. This is usually seen as a bearish signal, hinting at lower liquidity, less investor involvement, and perhaps even reduced real-world use for XRP.

Adding to the cautious outlook, if we look at the XRP price chart, it’s still trading below its Super Trend Indicator. This points to continued downward pressure in the market. As of now, this momentum indicator is acting as dynamic resistance, sitting above XRP’s price at $2.84.

For those unfamiliar, the Super Trend indicator is a tool to gauge the direction and strength of an asset’s price trend. It appears as a line on the chart, changing color to signal the trend’s direction – green for upward, red for downward.

When an asset’s price is below this red indicator line, it suggests we’re in a bearish market trend. Traders often see this as a signal to sell or to be cautious about buying, perhaps even considering short positions.

XRP Bulls Eye Recovery—Breaking $2.61 Could Trigger a Run Toward $2.84

Currently, XRP is trading around $2.46. It’s holding just above a long-term support level around $2.13. If the selling pressure increases, we might see XRP test this support again.

If it can’t hold at $2.13, watch out below! XRP’s price could potentially fall further to $2, where another strong support level is waiting.

On a more optimistic note, if buyers step back in and momentum shifts, XRP could try to break through the resistance level at $2.61. If it manages to push past that, we could see XRP climb upwards towards that Super Trend indicator we mentioned earlier, around $2.84.