- XRP Ledger activity dropped 61%, but the decline appears tied to market normalization rather than fading demand.
- Binance XRP reserves hit a three-month low, signaling investors may be accumulating despite price weakness.
- XRP remains under technical pressure, though easing selloffs hint at stabilizing market conditions ahead.
Activity on the XRP Ledger fell sharply over the past day, with active accounts dropping from nearly 20,000 to about 7,800, according to on-chain data. The 61% decline comes as XRP trades near $1.16 following a broader downturn in the cryptocurrency market.
Although the plunge has been attracting the attention of traders, it is not indicative of any decrease in the popularity of XRP. Investors have been moving their coins from exchanges, and previously, the bulk of the network’s transactions were made due to arbitrage transactions and coin releases. With a reduction in these events, activity on the network went back to normal.
Activity Decline May Reflect Normalization
The decline in active accounts occurred when there was a high frequency of use of the XRP ledger. This was due to arbitrage and other types of trades that led to high transaction frequency in this period.
As trading patterns started to slow, the transaction patterns got back to normal. Furthermore, the fall does not necessarily mean lack of interest in the coin since the spike in blockchain transactions may not last after the market is calm.
Additionally, the price of XRP has been falling along with the price of other coins prior to this fall. The reason behind the fall in this case is the low sentiment of the trader concerning the value of the XRP.
XRP Price Remains Under Pressure
Even though there was some rebound, there are still several technical obstacles for XRP. The cryptocurrency recovered from its recent lows at $1.12 but is currently trading at $1.17. Nonetheless, the general sentiment is bearish.
XRP trades further below all major moving averages. Specifically, the 20-day average can is around $1.28, whereas the 50-day average is at $1.36. The 100-day and 200-day averages are even higher.
The Relative Strength Index recently bounced from the oversold area to 33. This indicates that there is no more selling pressure. However, there is no bull momentum either.
Related: XRP Price Prediction: Can Bulls Defend $1.10 as Selling Pressure Intensifies?
Binance Data Points to Accumulation
Crypto analyst Greg Miller highlighted another important trend. He wrote on X, “$XRP on Binance just hit a 3-month low. 2.7B tokens sitting on exchange, down 66M since March.”
He added, “People were pulling XRP off exchange while it was bleeding. That’s not panic selling. That’s accumulation.”
Data from CryptoQuant shows XRP balances on Binance fell from about 2.75 billion tokens to roughly 2.70 billion in late May. The decline suggests that investors moved millions of XRP off the exchange during a period when prices were under pressure.
Market analysts often view falling exchange balances as a sign that investors are transferring assets into private wallets rather than keeping them available for trading.
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