Analysts indicate that before XRP falls back to $2, trading fees have significantly declined, which may prompt a deeper price correction.
Key Information:
XRP trading fees have dropped to 650 XRP per day, the lowest level since December 2020.
The target for the descending triangle of XRP is $1.73.
According to on-chain data provider Glassnode, the total daily transaction fees on the XRP Ledger (XRPL) have significantly decreased since the beginning of the year.
Glassnode stated in a post on X last Thursday that the total fees paid for XRP have fallen from 5,900 XRP per day on February 9 to about 650 XRP per day, adding:
The decline in transaction fees coincides with a sharp decrease in XRP futures open interest (OI), which has dropped from 1.75 billion XRP at the beginning of October to 740 million XRP, a reduction of 59%.
Additionally, the funding rate has decreased from 0.01% (7D-SMA) to 0.001%, indicating that derivatives traders' confidence in XRP's rebound capability is waning.
According to Cointelegraph, market sentiment towards XRP has fallen into the "fear zone," marking the highest level of FUD since early October. Some analysts suggest that such a decline could be a precursor to a significant rebound in XRP's price, as similar situations have occurred in the past.
The technical analysis of the XRP/USD price also shows that if a descending triangle pattern is completed, there is potential risk for further declines.
The chart below indicates that if the price breaks below the $2 triangle support line, there is a greater downside risk.
The measured target of this pattern (calculated by adding the height of the triangle to the breakout point) is $2.20, representing a 15% drop from the current price.
According to Cointelegraph, the key support zone for XRP remains between $2 and $1.98, and maintaining this range is crucial to avoid further declines to $1.61.
Related: Fed rate cuts may boost stocks, but Bitcoin (BTC) options are bearish below $100,000 in January
This article does not contain investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original: “XRP Transaction Fees Drop 89%: Is the Price Heading Below $1.75?”
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