#CryptoMarketWatch

XRP Price Prediction: Whales Are Selling, Small Investors Are Leaving – What's Next?

A state of "extreme fear" dominates XRP. While on-chain data raises alarms, our news on potential scenarios below $1.60 and technical analysis.

Recent data observed in the XRP ecosystem paints a concerning picture for many investors. The sharp decline in on-chain activity and the withdrawal of individual investors cast a shadow over bullish XRP price forecasts.

Currently, XRP is trading around the critical support level of $1.60. However, whether this level can hold remains a major question mark.

Collapse in XRP On-Chain Activity: Are Individual Investors Leaving?

Throughout January 2026, the number of active addresses on the XRP Ledger has fallen to new lows. According to recent data, the number of active accounts dropped to 15,743, testing the lowest level seen since February 2025.

This decline not only indicates user loss on the network but also confirms that individual participation and on-chain demand are weakening.

Velocity data, which measures token circulation speed, also supports this view; unlike the steady upward trend seen in 2024, most recent movements are driven by short-term speculative trades rather than permanent usage.

XRP Price Prediction: So, Is There No Good News at All?
Open interest in XRP has fallen to about $2.9 billion, the lowest in the past year, as the price continues its downward trend. This is another sign of widespread decline in investor confidence.

The XRP price remains trapped within a steep descending channel, and recent moves make the outlook even more pessimistic. The inability to regain resistance around $2.20 and a subsequent pullback to the $1.60 region clearly favor a “bear” market trend.

The RSI (Relative Strength Index) has fallen to 28; this indicates XRP is technically oversold and a short-term rebound is possible. However, unless this rally breaks out of the price channel and closes above $2.20 on a daily basis, it will likely remain just a correction.

If the $1.60 support level is lost on a daily close, the chart will open the way for a deeper decline toward the next significant demand zone around $1.40.

Until on-chain activity stabilizes and the price recovers the broken resistance levels, any signs of strength in XRP should not be seen as a genuine recovery but rather as a temporary relief within a broader capitulation phase.

*Alt text: XRP logo*
Following the recent decline, on-chain activity has sharply decreased, indicating a significant reduction in network participation. The number of active addresses has fallen to levels not seen since February 2025, suggesting that both individual and institutional investors are retreating from the market.

The decrease in token velocity further confirms this trend, as most recent movements are driven by short-term speculative trades rather than long-term holding or real usage.

In summary, the current on-chain data signals a bearish sentiment, with decreasing activity and confidence among investors. The technical indicators, including RSI, suggest that XRP is oversold, but a meaningful reversal requires breaking key resistance levels and sustained buying interest.

Investors should remain cautious, as the market appears to be in a broader capitulation phase, and any short-term rebounds are likely to be temporary unless significant fundamental or technical shifts occur.