XRP’s price action has been in a holding pattern, with its value remaining stuck below the $2.30 mark. While the coin shows potential from an increasing developer engagement, its technical indicators and on-chain metrics paint a picture of fading momentum.

Decline in Network Activity

The recent stagnation of XRP’s price comes amid a notable decline in user and whale activity on the network. According to data from Santiment, daily active addresses on the XRP Ledger have dropped drastically from a high of 612,000 in March to just over 40,000. This sharp decline signals a slowdown in user engagement and network activity, something that has weighed heavily on XRP’s price.

Additionally, whale activity has followed suit. Large transactions—defined as those exceeding $100,000—have fallen by a third since their peak in March. This drop in whale transactions marks the weakest period of engagement since November 2024, contributing to the stagnation in XRP’s price.

Developer Activity Shows Promise

Despite these negative trends, there is a silver lining in the form of growing developer activity. According to GitHub data, developer contributions on the XRP Ledger have surged by an impressive 196% over the last 30 days. This uptick in contributions suggests that behind the scenes, there’s significant effort being put into improving and expanding the XRP ecosystem.

This renewed developer focus coincides with the introduction of two new decentralized finance (DeFi) protocols on the XRP Ledger—Vaultro Finance and XpFinance. Both protocols debuted on May 5, 2025, signaling a growing interest in building DeFi infrastructure on the network. These additions to the XRPL ecosystem could help fuel further adoption of XRP, particularly in the increasingly popular DeFi space.

Moreover, Ripple, the company behind XRP, recently acquired Hidden Road, a prime brokerage firm. This acquisition signals Ripple’s continued ambitions to expand its institutional presence, which could further bolster the network’s utility and long-term potential.

Technical Indicators: A Bearish Outlook

Looking at XRP’s technical indicators, the outlook remains somewhat bearish. At the time of writing, the price was locked in a narrow range, hovering just above the lower Bollinger Band and below its 20-day moving average. This indicates a lack of strong buying momentum, with the price struggling to find any substantial upward direction.

The Relative Strength Index (RSI) is sitting at 42.83, suggesting weak momentum. The RSI is edging closer to the oversold territory, but it has yet to trigger a meaningful recovery. Volume also remains muted, which further reflects a lack of conviction from buyers.

Since early April, XRP has been unable to break above the crucial $2.30 resistance level, nor has it found reliable support below the $2.00 mark. This ongoing period of indecision suggests that XRP could remain stuck in its tight range unless a catalyst appears to drive significant movement in either direction.

Conclusion: What’s Next for XRP?

XRP’s stagnation below the $2.30 level is a reflection of broader network activity trends, with both user engagement and whale participation showing sharp declines. However, the uptick in developer activity and the introduction of new DeFi protocols offer hope that the network is building for the future.

For XRP to break out of its current range, bulls will need to reclaim the mid-Bollinger Band and show that there’s strong buying interest. If the broader market sentiment worsens, XRP faces downside risks, but the increasing developer contributions suggest that it may be in the process of laying the groundwork for future growth.

Whether this potential will be enough to reignite the altcoin remains to be seen, but for now, XRP’s fate seems tied to both market conditions and its growing developer ecosystem.