- XRP Binance volume surge quickly reverses as trading activity falls below average.
- Network fee demand on XRP plunges over 91% since February’s speculative peak.
- Analysts eye $1.14 support as XRP risks fresh decline toward the $1.10 zone.
XRP trading activity on Binance surged to its strongest level in four months before momentum quickly faded, according to recent data from Glassnode. The XRP Volume Z-Score (30D) climbed near 4.5 points during the recent rally, signaling unusually high trading activity across the exchange. However, the indicator rapidly reversed and dropped to nearly -0.70, showing that the burst of market participation failed to sustain itself.
The sharp reversal suggests traders aggressively repositioned during the spike before activity cooled sharply. Besides, the decline below the 30-day average highlights weakening short-term enthusiasm after the earlier surge in participation. Analysts often associate these rapid shifts with unstable market conditions and elevated volatility.
Meanwhile, XRP continued moving lower during the same period. The token traded near $1.13 at press time, reflecting ongoing selling pressure across the broader market. Daily trading volume stood above $2 billion, while XRP recorded a 2.59% decline over the past 24 hours. Additionally, the asset lost more than 8% during the previous seven days.
Related: SBI Shinsei Bank Launches BTC, ETH, and XRP Deposit Interest Pilot
Glassnode Data Signals Weakening Network Demand
Glassnode also reported a sharp decline in XRP network fee activity. The 90-day simple moving average of total fees paid on the XRP network dropped from 5,900 XRP in February 2025 to roughly 500 XRP currently. Consequently, network fee demand has fallen by approximately 91.5% since the speculative peak earlier this year.
The decline points toward weaker organic activity on the network. Moreover, the data suggests traders and investors reduced transactional usage significantly after earlier speculative excitement faded. Lower network fee activity often reflects declining user participation and reduced blockchain utilization.
At the same time, rising trading activity alongside falling prices may indicate heavy distribution from market participants. Such conditions frequently emerge during uncertain market phases, especially when traders rapidly rotate capital or reduce exposure.
Analysts Watch Critical XRP Price Levels
Crypto analyst EGRAG CRYPTO noted that XRP recently touched $1.1860 before entering another consolidation phase. According to the analyst, XRP now attempts to build momentum for another upward move.
The analyst identified a short-term target range between $1.19 and $1.25 if bullish momentum strengthens. However, XRP must hold above the $1.14 level to maintain its current structure. Losing that support could trigger another decline toward $1.10.
Related: Bitcoin Weakens as Gap Between Crypto and Equities Widens
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