XRP price risks slashing weekly gains as liquidations surge amid falling network growth :

XRP price peaked at $2.65 on Wednesday, stalling the uptrend amidst a market-wide slowdown.
Long liquidations reach $8.44 million over the past 24 hours as the uptrend targeting $3.00 falters.
Declining network growth signals reduced demand and engagement as fewer new addresses are created on the XRP Ledger.
Ripple (XRP) price slides slightly on Thursday to $2.51 after peaking at $2.65 on Wednesday. The two-week streak from support around $2.12 mirrored bullish sentiment in the wider crypto market, supported by strong fundamentals in the broader crypto market. However, a slump in XRP's network growth points to declining user engagement, which could inhibit the uptrend eyeing the $3.00 psychological resistance in the mid-term.
Progressive talks between the United States (US) and China resulted in a 90-day trade truce, accelerating recovery in global markets. Earlier, the US and the United Kingdom (UK) struck a bilateral trade agreement easing trade between the two nations.
XRP rally slows as network activity shrinks
The XRP Ledger showcases mixed signals with Sentiment's Network Activity metric consistently falling from nearly 16,000 addresses in January to approximately 3,400 addresses on May 7.
Declining network growth for XRP indicates fewer new addresses and reduced user engagement, signaling weaker demand. The 78.7% figure could undermine the rally, as observed with the XRP price (green line) on the chart below. Since its peak of $3.40 in January, XRP tumbled to $1.61 before reversing the trend in the second week of April.
Meanwhile, XRP's price hovers at $2.53, as liquidations in the derivatives market surge. CoinGlass highlights $10.14 million in liquidations over the past 24 hours. Long positions accounted for the lion's share of the liquidations at $8.44 million compared to $1.69 million in shorts.
The increase in long position liquidations, as well as the drop in open interest (OI) and trading volume, hints at cooling speculative activity. Lower trading volume at $8.69 million from approximately $19.5 million on Monday implies crunching liquidity, potentially augmenting volatility, especially if traders adjust positions, increasing sell-side pressure. The slight decline in OI by 1% to $5.41 billion indicates the unwinding of leveraged positions, potentially from profit-taking or liquidations.
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