XRP Price Faces a Crucial Test as Network Activity Weakens—Is the $1 Support at Risk?

The XRP price is trading around $1.10, extending its recent decline as trading volume remains subdued and buyers struggle to regain momentum. The token has been under pressure amid a broader market cooldown, while weakening network activity has added to the cautious 

sentiment. With XRP continuing to trade inside a long-term descending channel and on-chain data showing active addresses slipping to multi-month lows, traders are now watching one key question: Can the $1 support hold, or is another leg lower on the cards?

XRP Active Addresses Hit Multi-Month Lows

On-chain data from Glassnode shows that the number of active XRP addresses has fallen sharply in recent weeks, dropping to around 20,000—its lowest level in nearly a year. The sustained decline suggests that fewer users are actively transacting on the XRP Ledger, pointing to weaker network participation despite the token holding above the key $1 level.

Active addresses are often used as a gauge of blockchain activity and investor engagement. When the metric trends lower over an extended period, it typically signals declining user demand and reduced on-chain activity, making it harder for prices to sustain a strong recovery without fresh buying interest.

While weakening network activity doesn’t necessarily guarantee further downside, it does highlight the lack of conviction among market participants. For XRP to regain bullish momentum, traders will likely look for a recovery in both active addresses and trading volume, alongside a technical breakout above key resistance levels.

XRP Price Tests Crucial Support Range

XRP remains under pressure after extending its downtrend within a descending channel, a pattern that has produced a series of lower highs and lower lows since its 2025 peak. Although sellers continue to dominate the broader trend, the token is approaching a critical support area near the 0.236 Fibonacci retracement at $1.16, with the psychological $1 level emerging as the next major line of defense.

While the volume has dropped, highlighting the drop in trader participation, the trade is within a bearish range. 

Meanwhile, the Chaikin Money Flow (CMF) remains below the zero line at -0.13, indicating that capital outflows still outweigh inflows. For the bullish case to strengthen, XRP must first break above the descending channel and reclaim the $1.16 resistance level. A successful breakout could shift momentum in favor of buyers and pave the way for a move toward the 0.382 Fibonacci level at $1.64, followed by the 0.5 retracement near $2.03.

The Bottom Line: Can Bulls Defend the $1 Support?

XRP price remains under pressure as declining network activity and a prolonged downtrend continue to weigh on market sentiment. However, the $1 support remains the key level to watch. Holding above it could allow buyers to regain momentum and challenge the descending channel resistance, while a break below may pave the way for a deeper correction. For now, the next move will likely depend on whether improving on-chain activity and renewed buying volume can return to the market.