XRP has extended its decline after failing to convert recent price strength into a sustained breakout. The altcoin appeared positioned for a bullish move as it compressed within a descending structure. 

That setup collapsed as selling pressure returned. However, investor behavior suggests XRP might have a chance at reversal.

XRP is showing early signs of a potential trend shift as a bullish divergence forms on the Chaikin Money Flow indicator. Over the past 10 days, CMF has printed a higher low while the XRP price continued setting lower lows. This divergence suggests accumulation is increasing despite declining prices, reflecting growing buy-side interest.

Rising CMF typically indicates strengthening capital inflows, even during corrective phases. For XRP, this pattern implies sellers may be losing control as demand quietly builds. While price action remains weak, sustained accumulation often precedes reversals, positioning XRP for a possible recovery if broader market conditions stabilize.

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Macro momentum indicators point to fading network growth. Historically, new address creation has been a key driver of XRP price expansion. Rising participation often signals fresh capital entering the ecosystem, and that inflow has supported rallies during previous recovery phases.

Currently, XRP’s new addresses have dropped to a 13-month low of 3,090. This sharp contraction signals skepticism among prospective investors. Weak onboarding reduces liquidity support and limits upside catalysts. Thus, without renewed network growth, price recovery attempts remain fragile and vulnerable to renewed selling pressure.

XRP trades near $1.95 at the time of writing after failing to break out of a descending wedge pattern. The structure had projected a bullish continuation. However, that scenario unraveled as broader market weakness returned, invalidating the expected upside and reinforcing a bearish technical bias.

Additionally, the lower-wick recovery earlier on Monday suggested selling pressure was absorbed by the holders. That confidence quickly faded as the price resumed its decline. XRP now trades below $2.00 and holds barely above $1.93. Losing that level could open the door to a drop to $1.86.

On the other hand, reversing the bearish thesis requires a decisive recovery. XRP must reclaim $2.00 and close above it to restore confidence. Thus, a confirmed breakout would have supported a move toward $2.25, per the wedge projection. For now, even moving above $2.00 would invalidate the current bearish outlook and reduce downside risk.

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