XRP’s transaction number metrics lost around 70% from its local top, suggesting a sharp decline in activity in the last few days. The decline in metrics like that suggests an outflow of traders and investors from the network, which is the last thing you want to see amid questionable market performance.
As of Feb. 9, 2025, the number of transactions executed has drastically decreased from over three million daily transactions to roughly one million. The number of successful transactions executed also shows a downward trend, dropping from almost 2.5 million to just over one million, which further supports the declining network participation.
Numerous factors, such as regulatory uncertainty, market-wide downturns and a change in investor sentiment could be responsible for this decline in transactional activity, which indicates a lower demand for the XRP Ledger’s utility. In spite of the unsettling network activity, XRP is now trading at about $2.0428, which represents a modest intraday increase of 1.4%. The asset is still well below its most recent peak of $3.20, so this increase does little to reverse the overall trend.
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Given that a break below this level could send XRP plunging toward $1.65, where the 200-day EMA is positioned as a last line of defense, the $2.18 support level is turning out to be crucial. In order to restore bullish momentum, XRP needs to recover $2.67 and surpass the $3.00 resistance. If this is not done, there might be more selling pressure in the upcoming weeks.
Such a large drop on the market, might push XRP to levels we have not seen for a long time in addition to making things slightly worse than we would expect. During the upcoming week, a surge of volatility on the market in general might happen, which will be beneficial for XRP too.
Source: https://u.today/xrp-loses-70-in-transactions-amid-erratic-price-movements