Unquestionably, XRP has performed poorly on the market in recent weeks, with price action declining to levels not seen since the beginning of the previous recovery cycle.
XRP's recovery
On the other hand, on-chain activity on the XRP Ledger might indicate that the worst selling pressure phase is already over, even though the price structure still seems brittle. The significant increase in payments volume seen on the XRP Ledger at the end of January, which was followed by a sharp decline in transaction flows soon after, is the primary cause of this interpretation.
Source: XRP Ledger
One of the biggest short-term spikes seen on the network in recent months occurred when the volume of payments momentarily surpassed two billion XRP transferred daily. An increase in network usage could initially appear to be bullish, but context is important.
HOT Stories Ripple Participates in High-Stakes White House Summit Crypto Market Review: XRP Abandoned by Bulls, Ethereum (ETH) Takes $200,000,000 Punch, Don't Write off Shiba Inu (SHIB) Top British Corporate BTC Holder Determined to Buy More U.Today Crypto Digest: Shiba Inu (SHIB) Eyes Potential 700% Rally, XRP Ledger Breaks Historical Record, Peter Brandt Issues Bearish Bitcoin Price Prediction
The fact that this spike happened while the price of XRP was already plummeting indicates that it was not the result of utility growth or organic adoption. Rather, it was probably the result of big holders shifting money and selling off holdings, which caused a surge in selling pressure on all exchanges. In other words, heavy distribution was correlated with high payment volume.
XRP's rapid activity drop
The circumstances now appear to be different. Since then, payments activity has decreased by about 95%, indicating a significant slowdown in network transfer activity. Even though a collapse like this might seem concerning, it might actually be a sign that the selling wave is slowing down.
You Might Also Like
Tue, 02/03/2026 - 00:01 Crypto Market Review: XRP Abandoned by Bulls, Ethereum (ETH) Takes $200,000,000 Punch, Don't Write off Shiba Inu (SHIB)ByArman Shirinyan
With rallies routinely rejected below significant moving averages, XRP is still stuck in a larger downtrend channel on the price chart. However, volume spikes associated with panic-selling are less common, and momentum indicators are moving into oversold territory. This combination implies that, rather than a new collapse, the market might be entering an exhaustion phase.
XRP has yet to regain the crucial resistance areas required to validate a reversal, so investors should continue to exercise caution. The foundation for a recovery attempt, however, might start to take shape if selling pressure keeps waning and network activity levels out at lower, healthier levels.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
