With fear hitting the markets, on-chain activity has been low on the XRP Ledger. So what could happen to the price?
The Total Fees Paid on the XRP Oversold Signal has dropped a lot, almost 89% since February. It went from around 5,900 XRP to only about 650 XRP per day. This shows that things on the Ripple network have become very quiet, even though XRP recently got a few ETF launches.
Even with more than 900 million dollars coming into the market, the on-chain activity did not increase. Social media sentiment is also still negative. Glassnode data shows this is the lowest activity since December 2020. But Santiment says that when sentiment stays negative and the market stays slow like this, it often leads to a bounce-back rally later.
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XRP Primed ATH Retest $1.90 Floor Holds
Even though the Federal Reserve announced a rate cut of 0.25 bps yesterday, the price of XRP coin is still stuck around the $2 support level. According to market analyst The Chart Nerd, the price may move a little lower and test the $1.90 support before a strong jump begins. Staying above $1.90 is still considered positive or constructive.
According to the Stochastic Relative Strength Index, XRP coin is in the oversold zone, which often signals a bounce or recovery. Analysts say that XRP may retest the multi-month resistance line of $3.60 very soon. This level is just 5 cents below Ripple coin’s all-time high of $3.65, which was hit in June after a $50 million settlement with the SEC.
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People Also Ask – XRP oversold signal:
What caused the 89% drop in XRP transaction fees?
XRP Ledger fees per daily transaction have fallen from 5,900 XRP to just 650 XRP. This represents a massive 89% drop since the start of 2025. According to Glassnode data, such low fees are being seen for the first time since December 2020. This means that people are engaging in less activity on the network.
How does this fee crash indicate XRP oversold signal?
Along with the decrease in fees, futures open interest has also fallen by 59% to 0.74 billion XRP. Funding rates are negative, and sentiment on social media is in the fear zone. All of these things indicate that trader confidence is low and the market may have entered an oversold state, from which it rarely bounces.
What is the current XRP price outlook?
If XRP falls below the $1.90 support level, the price could come under further pressure, especially since a descending triangle pattern has formed on the chart. However, history shows that when activity is very low, the market often rallies, just in case the sentiment changes.
Why do transaction fees matter for XRP?
On XRPL, the fee for every transaction is paid in XRP and then burned. This prevents spam and keeps the supply gradually decreasing. When fees are low, it means people are using the network less, but on the positive side, XRPL becomes more attractive for low-cost use cases.
Could this lead to a price bounce soon?
Analysts are saying that oversold indicators like the RSI squeeze and Stochastic signals indicate a chance for a bounce. But a strong recovery will only happen when on-chain volume increases and the market finds new catalysts. Currently, the trend shows that pressure is present.
