The Fanatics, credited with driving much of the noise behind Crystal Palace over the years, said young supporters were being priced and pushed out of the game entirely.
"Increasingly driven out by the sky high ticket prices, needless restrictions that are designed to strip away the dignity of supporters and relentless harassment and legal action, many young people are choosing to opt out of a game which seems determined to push them away," the group said in its statement.
Members traced their history back to campaigns for the basic right to bring flags and banners into the ground and stand in Block B, adding: "From fighting for the most basic of rights just to take materials into Selhurst and stand up in Block B in the early days, to never ending problems with the club right up to the present day, we have been uncompromising in fighting for what we believe in and the rights of football supporters everywhere."
The group pointed to a structural problem rather than a single incident behind the decision to fold.
"The current setup is unsustainable. We have repeatedly warned the club that likeminded fans cannot congregate at Palace in the numbers required to sustain a growing active supporter culture. The conditions are simply not there," the statement continued, noting that some of the loudest nights at Selhurst Park had come during the group's spell in Block E, even as the picture elsewhere in the stadium grew more mixed as expectations rose during more than a decade of top-flight football.
They called for "a drastic shift at Palace towards younger fans and a move away from a culture in which people attend the ground expecting to be entertained, towards a culture of supporters turning up to play an active role in influencing the result."
The Fanatics said they would continue attending matches, but as a loose group of friends rather than an organised movement.
Separately, Palace have opened a search for a new pre-match song to accompany supporters into games, despite already having one of the most recognisable walk-out tunes in English football in Dave Clark Five's Glad All Over. A club statement explained the reasoning: "Supporters will have noticed a number of songs have been played in the final moments before kick-off across the last couple of seasons, including Can't Help Falling in Love and Insomnia.
"And now, we're looking for our fans to suggest — and then select — one song to become a tradition moving forward, similar to stadiums up and down the country, to complement the famous Selhurst Park atmosphere."