XRP slips toward danger zone as network activity collapses 91%

XRP has remained under pressure as network activity and investor profitability have dropped sharply from the levels seen during its 2025 rally.

Data from Glassnode shows a steep decline in activity across the XRP Ledger, raising questions about whether the token can hold above current levels as traders increasingly focus on support zones below $1.

The blockchain analytics firm's data shows the 90-day average of network fees has fallen to about 500 XRP from nearly 5,900 XRP recorded in February.

Source: Glassnode.

Because transaction fees are commonly used as a measure of network usage, the decline points to a significant slowdown in activity after XRP's run toward $3 earlier in 2025.

At the same time, investor behavior has become notably weaker. Glassnode reported that XRP's 90-day realized profit-to-loss ratio has dropped to 0.38 from 50 during the market peak near $3.40. 

The metric indicates that holders are now realizing approximately $1 in losses for every $0.38 in profits, a reversal from the profit-taking environment that dominated the first half of last year.

Pressure on sentiment has also come from conditions across the wider crypto market.

Recent inflation data has kept expectations for lower interest rates subdued, while Bitcoin has struggled to establish a sustained recovery. 

With liquidity remaining limited, speculative assets such as XRP have found it difficult to attract fresh capital despite ongoing developments surrounding exchange-traded fund applications and cross-border payment initiatives.

XRP price analysis

Recent price action shows XRP trading near $1.11 after losing support around the $1.40 area.

The daily chart places XRP below its 20-day, 50-day, 100-day and 200-day exponential moving averages, which currently sit near $1.22, $1.30, $1.40 and $1.60, respectively.

XRP/USD 1-day price chart. Source: TradingView.

The alignment of those moving averages continues to favor sellers, while Chaikin Money Flow remains negative at approximately -0.16, indicating capital is still leaving the asset rather than entering it.

Short-term indicators also point to a market struggling to regain momentum.

On the four-hour chart, XRP recently rebounded from the lower Bollinger Band near $1.08 but remains below the Bollinger midline around $1.14.

XRP/USD 4-h price chart. Source: TradingView.

The upper band near $1.19 now represents the first major resistance area.

Momentum indicators have yet to confirm a recovery.

Although selling pressure has eased from the sharp decline seen earlier in June, the MACD remains below the zero line and continues to trade beneath its signal line, suggesting buyers have not regained control.

Large holders stay on the sidelines

Despite weakening on-chain profitability, large XRP holders have not shown the type of aggressive selling that typically accompanies major market tops.

CryptoQuant analyst Pelin Ay reported that transfers of more than 1 million XRP to Binance have continued to decline since the token's 2025 peak.

Historical market corrections were often preceded by rising exchange inflows from wallets holding between 100,000 and 1 million XRP, as well as wallets controlling more than 1 million XRP.

According to the analyst, exchange transfers from the 100,000-1 million XRP cohort have fallen by 15% since October 2025, while inflows from wallets holding more than 1 million XRP have declined by 20%.

The analyst said the latest weakness appears to be linked more closely to leverage-driven liquidations and risk-off market conditions than to distribution by large holders.

Some market participants are already positioning around lower support levels. Trader Crypto Patel identified the $1.00-$0.60 region as a preferred accumulation zone.

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