In terms of price, XRP is still trading below important moving averages after clearly breaking below its declining channel support. Although the daily RSI is still hovering around oversold territory and momentum indicators are still weak, buyers have not demonstrated a strong desire to intervene, and the recent decline toward the $1.40 area indicates that bullish momentum has virtually completely vanished, making the market susceptible to additional declines.
XRP/USDT Chart by TradingViewSimultaneously, data from the XRP Ledger indicates that transaction volumes and payment counts are returning to previous highs. Increased network activity is typically seen as a positive indication of adoption or rekindled demand. Context is important, though this increase in activity seems to be associated with increased selling pressure rather than accumulation in the current environment
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While transaction costs and settlement speeds are still favorable, it appears that both large holders and retail participants are using network liquidity to offload their positions. Increased transfer activity during a downtrend frequently indicates that money is leaving the asset rather than coming in, which supports the pessimistic view.
Additionally, the larger technical structure is still brittle. Previous support levels are now serving as resistance, and XRP is still trading below key trend indicators. Any short-term recovery runs the risk of turning into just another relief rally inside an ongoing downtrend if the $1.60-$1.70 zone is not firmly reclaimed. In the future, if sentiment on the cryptocurrency market declines once more, the situation may worsen.
If buyers do not quickly regain control, the combination of ongoing selling pressure and already shaky technical support could lead to more significant corrections. Theledger for XRP may be active right now, but the price action paints a more somber picture: participation is high but confidence seems to be ebbing, and unless market conditions change rapidly, the asset may continue to struggle in the sessions to come.
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