XRP dropped 1.36% to near $1.39 on May 8, pressured by an 85% plunge in new XRP Ledger addresses to 2,700-the lowest in 18 months. This weak on-chain activity eroded market sentiment, even as Ripple's institutional efforts and RLUSD stablecoin growth held attention. The token now tests support around $1.40 amid broader crypto weakness, with Bitcoin down 0.78%.

Network Activity Signals Fading Demand

Glassnode data shows daily new addresses on the XRP Ledger fell from 18,000 in December to 2,700 on May 7. Monthly active supply declined too, reflecting reduced user engagement. Lower address growth curbs retail buying power in spot markets, leaving XRP vulnerable despite active institutional pilots. Price action confirms the strain: XRP slipped below its ascending trendline and 100-period moving average, failing to sustain gains above $1.40.

Institutional News Sparks Brief Rally, Then Pullback

XRP touched $1.45 after news of a Ripple pilot with JPMorgan and Mastercard for tokenized Treasury settlement, completed in under five seconds. Traders sold into the hype, triggering a "sell the news" retreat during a soft market. Binance perpetual volume hit $372 million on May 7-higher than October's $242 million but still subdued-indicating absent speculative fervor. Recovery hinges on new buyers, not short covering, as key supports weaken.

RLUSD Expansion Highlights Ripple's Broader Appeal

Ripple USD (RLUSD) market cap climbed above $1.55 billion from $1.24 billion on March 31, adding $310 million in seven weeks. This growth aligns with rising stablecoin interest from firms like BlackRock, which sees potential in regulated payment systems, and Ripple's KBank partnership in South Korea. Yet XRP price decouples from this momentum, underscoring how network weakness overshadows ecosystem wins.

Technical Levels Define Near-Term Path

XRP trades in a tight range, with $1.40 support and $1.45 resistance in focus. A close above $1.45 could target higher levels; a drop below $1.40 risks $1.35. The 50-day moving average at $1.40 acts as pivot, while RSI near 32 signals low momentum without oversold extremes. ETF holdings lock 1.26% of supply-a record-but retail gaps persist amid falling addresses, keeping the outlook neutral to bearish until demand revives.