XRP is displaying an unusual divergence between price weakness and surging on-chain activity, as network usage metrics reach levels typically associated with strong adoption.
Daily payment counts have stabilized around 900,000 to 1 million transactions, while payment volume has spiked to 1.35 billion XRP transferred in single-day peaks.
This creates pressure on bearish positioning as capital continues flowing through the network despite price compression below key technical levels.
What Happened
XRP remains trapped below its 50-day and 100-day moving averages, which serve as resistance ceilings.
The token is trading around $2.05-$2.08, down approximately 16% over the past month.
Technical indicators show XRP trading within a declining channel, with the $2.00-$2.05 range serving as crucial demand support.
A breakdown below this level could trigger a deeper retracement toward $1.85-$1.90, where historical liquidity sits.
However, on-chain metrics tell a different story.
The XRP Ledger recorded 2.14 million daily transactions in Q1 2025, with June seeing over 5 million transactions processed in a single day.
Recent data shows payment volume surged nearly 10x over baseline levels, jumping to 1.35 billion XRP in daily transfers compared to the typical 150-200 million range.
Daily payment counts consistently hover around 900,000 to 1 million transactions, with payment volume ranging from $396 million to $17 billion depending on transaction sizes.
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Why It Matters
The divergence between stagnant price action and rising network activity signals actual utility rather than speculative churn.
Sustained transactional demand makes it harder for sellers to suppress price, as they require continuous new supply inflows.
Ripple's On-Demand Liquidity service processed $1.3 trillion in transactions during Q3, with institutional clients driving a 500% surge in activity.
Institutions now control 10.6% of XRP supply after adding $3.8 billion during August price dips.
For XRP to turn structurally bullish, price must reclaim the 50-day EMA and exit the declining channel with volume confirmation.
Without this technical breakout, rallies remain corrective rather than impulsive despite strong fundamentals.
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