Is XRP's $0.80 Support Level At Risk? On-Chain Signals Raise Concerns

XRP faces potential downside pressure toward the $0.80 support zone, according to recent on-chain analysis from crypto researcher Ali Martinez. The findings highlight three critical market signals that warrant attention from traders and investors monitoring the blockchain asset.

Network Engagement Shows Signs Of Cooling

The first warning indicator centers on blockchain participation metrics. Active address counts—which measure the daily volume of unique wallets conducting transactions—have contracted to approximately 38,500 addresses. This pullback in daily active addresses reflects diminishing momentum and reduced investor activity on the XRP network. When participation levels decline this sharply, it typically signals weakening confidence in the asset’s near-term trajectory.

For context, lower network engagement often precedes price volatility, as it suggests retail participation is thinning and major players may be reassessing their positions.

Large Holder Positioning Shifts Bearish

Adding to the pressure, whale-tier investors have recently offloaded roughly 40 million XRP tokens from their holdings. Because these high-net-worth participants control substantial positions, their selling behavior carries meaningful weight for the broader market. Recent liquidation patterns from major holders suggest they may be anticipating downside or taking profit at current levels.

The significance lies in the confidence signal: when whales distribute holdings, it often foreshadows market weakness rather than strength.

Price Levels And Resistance Breakdown Risk

Ali Martinez’s analysis of the UTXO Realized Price Distribution reveals a critical supply cluster positioned at the $1.77 price level. This cost-basis cluster represents a concentration of investor entries from XRP’s historical price action. Should the asset break below this threshold during continued selling pressure, limited demand zones exist before reaching the $0.80 support area.

The $0.80 zone remains the largest demand pocket in XRP’s technical structure below the $1.77 level, making it a potential capitulation target if bearish momentum intensifies.

Current Market Context

At present, XRP trades near $2.10, maintaining modest strength. However, the on-chain data convergence—declining network activity, whale distribution, and weakening supply support—suggests caution may be warranted. The path from current levels to $0.80 would represent significant downside, but the technical setup indicates the risk warrants monitoring as market conditions evolve.

Traders should track whether daily active addresses stabilize, whether whale accumulation resumes, or whether the $1.77 support holds firm as key decision points ahead.