XRP Drops 17% in a Month as Smart Money Cuts Holdings by 80%
XRP, the 3rd largest crypto by market cap, has had a wild ride over the last month. After hitting a year to date high in July...
Quick overview
- XRP has experienced a significant decline of 16.8% over the past month, currently trading at $2.93.
- Institutional interest in XRP has waned, with smart money wallet balances dropping 80% in 30 days, indicating broader market weakness.
- Network activity is also declining, with weekly transactions down 14.8% and active addresses down 2.1%, raising concerns about real-world demand.
- Technical indicators suggest that XRP could face further declines if it breaks below the support level of $2.70.
XRP, the 3rd largest crypto by market cap, has had a wild ride over the last month. After hitting a year to date high in July, it’s dropped 16.8% and is below both the 20 and 50 day moving averages. At the time of writing, XRP is $2.93, up 19% in 3 months and 63% from the 2024 low, with a market cap of $173.8B and daily volume of $6.4B.
Much of XRP’s earlier gains came from Ripple’s win against the SEC and the anticipation of a spot XRP ETF. But weakening demand and slowing network activity is now showing the rally is losing steam.
Smart Money and Futures Sentiment
Institutional flows are the clearest sign of changing sentiment. Nansen data shows XRP balances in smart money wallets have dropped 80% in the last 30 days. This is often a sign of broader market weakness as retail follows institutional exits.
Futures activity is similar:
- Open interest: down from $10.94B in July to $7.56B.
- Long/short ratio: below 1, more traders are short.
- Bearish divergence: RSI is declining despite recent price highs.
This is a sign of caution as traders are hedging against further declines.
A drop in price doesn't necessarily mean a drop in demand.
Every time the XRP price drops significantly, look at the circulating supply. They simply keep issuing more coins to drive the price down, and it'll soon drop back to 2.9, then drop again. Keep issuing more!— Carly (@Carly_e5) August 21, 2025
Weak Network Demand is a Risk
Beyond sentiment, the XRP network is also flashing warning signs. Dune Analytics data shows:
- Weekly transactions: down 14.8% to 12.4M.
- Weekly active addresses: down 2.1% to 107,340.
Slower activity on the XRP Ledger means weaker real world demand which could amplify the downside.
Technical indicators agree:
- Aroon Down: 92.86%
- Aroon Up: 7.14%
- Support zone: $2.70, deeper risk to $2.30 if that breaks.
Analysts say unless network activity picks up or institutional interest returns, XRP could be in for an extended correction in the coming weeks. For now, investors are watching $2.70 as the key level for the short term.
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