- XRP wallet creation fell 80% in 2025, with daily active addresses dropping from 577K to 34K, showing dropping user engagement.
- Persistent outflows over $250M since January suggest profit-taking or exits, dragging XRP from its $3.85 high to near $2.00 support.
- XRP trades within a tightening range; a break below $2.00 risks $1.90 drop, while surpassing $2.32 could signal a bullish reversal.
XRP is under growing pressure as new wallet creation and user activity both continue to fall sharply in 2025. On-chain figures show that new XRP wallets have dropped by nearly 80% since January.
At the same time, daily active addresses plunged from 577,000 to just 34,000, a steep decline in user engagement. This raises questions about the overall sentiment and momentum behind XRP as it attempts to hold the $2.00 support level.
Persistent Outflows Undermine Price Stability
From August to early November 2024, XRP remained under the $1.00 level with limited movement. A sharp rally followed in late November, peaking at around $3.85 by mid-January.
This surge came during a period of consistent inflows, some surpassing $200 million, indicating institutional buying or increased accumulation. However, since peaking, XRP has faced steady outflows that have reversed the price gains.
Sustained negative netflows have dominated the period from January to June 2025. Outflows in some instances exceeded $250 million, coinciding with major price drops. One significant outflow occurred in late February.
This outflow directly matched a sharp price decline, supporting the downward trend. These outflows suggest many holders are offloading XRP either to realize profits or cut exposure.
Key Price Zones and Compression Formations
According to Steph is Crypto, XRP has traded within a tightening range, forming an apex with converging trend lines since early 2025. The asset remains in an uptrend of higher highs and higher lows, but short-term movement shows bearish momentum.
Volume remains low, and no significant spikes have been recorded to validate current moves. For a deeper correction to materialize, volume must increase and a daily close below $2.00 must occur.
The $2.00 mark aligns with the 0.5 Fibonacci retracement level drawn from the April low to May high. As of now, XRP trades just above this level, and any candle close below $2.00 could push the price down to $1.90. However, any break above $2.32, as seen on June 15 high, may indicate a shift to the upside.
Market Positioning Suggests Growing Caution
Red bars have dominated the exchange netflow chart since January, indicating more XRP is leaving exchanges than entering. This behavior points to reduced short-term confidence among investors.
Many are likely moving tokens to cold storage or exiting positions amid legal and regulatory uncertainties. Notably, without renewed inflows above $100 million daily, XRP could struggle to regain bullish momentum and the $3 level.
There is a clear trend for XRP in the short-term: user engagement is weakening, outflows are increasing, and price action is trapped within key levels. Whether XRP can sustain the $2.00 mark will depend heavily on upcoming volume changes and investor response in the coming weeks.
