XRP Price Hits Critical Levels as Analyst Warns of 55% Drop

XRP has been experiencing a decline in price and network activity, according to analyst Ali Martinez. The token's price dropped below critical support levels at $2.00 and $1.90, turning both into resistance zones. This comes as whale investors continue selling XRP, with more than 40 million tokens being sold in recent days.

Network activity has also declined, with active addresses on the XRP network falling from 46,000 to under 39,000 within several days. Martinez warned that this decline could lead to a potential 55% drop in price based on current market conditions.

Despite this, the five spot XRP ETFs have attracted $1.15 billion in net inflows since Nov. 13, outperforming their counterparts for Bitcoin, Ethereum, and Solana. However, sustained or increasing inflows may not be enough to counteract the ongoing whale selling pressure and declining network metrics.