In a recent development, 835,000 units of XRP have been sold in the past 24 hours, thereby dropping the cryptocurrency's value out of the millionaire club.
In the world of cryptocurrencies, the strength of XRP's breakout remains uncertain, as the digital asset grapples with a significant decrease in network activity and a market dominated by the robust rallies of Bitcoin and Ethereum.
Over the past few months, XRP's on-chain activity has drastically decreased. Daily active addresses have dropped from over 600,000 in early 2025 to around 33,000 in August, and the transaction count has fallen by 51%. This reduction in activity signals a decline in user engagement and transaction volumes on the XRP Ledger. Daily account-to-account payment volumes have halved, falling from a peak of about 1 billion XRP to around 522 million XRP recently.
This decline in network activity has negatively impacted XRP’s market performance. The price has struggled to hold key technical support levels, breaking below a rising trendline and hovering near major moving averages like the 100-day EMA around $2.79 and potentially heading toward the 200-day EMA near $2.45. Technical indicators show bearish patterns, consistent with the decrease in on-chain transactions and user activity.
Moreover, "smart money" investors—typically institutional or sophisticated holders—have been offloading XRP, reducing their holdings by nearly 80% over the past month. This further weighs on price momentum.
In summary, the collapse in network activity reflects weakening adoption and transaction demand, which in turn dampens liquidity and market sentiment. This dynamic is causing XRP’s price to face downward pressure and increasing the likelihood of further short-term declines until network engagement stabilizes or grows again.
It is important to note that this analysis does not predict the future performance of XRP, and it is always advisable to conduct your own research before making any investment decisions. Furthermore, U.Today is not liable for any financial losses incurred while trading cryptocurrencies.
As always, the crypto market remains volatile, and the fortunes of various digital assets can change rapidly. While XRP still holds a significant position in the current market cycle, its current struggles highlight the importance of staying informed and vigilant in this rapidly evolving landscape.
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