XRP is going through a phase of tension as several indicators turn red. Indeed, the slowdown of the XRP Ledger, combined with the drop in flows to spot Ripple ETFs, fuels market doubts about the dynamics of the token. In a context of returning risk aversion to cryptos, investors are now closely monitoring the ability of XRP to preserve its key technical levels.
In brief
- XRP is going through a phase of weakness marked by a continued drop in price and a return of fear to the crypto market.
- XRP Ledger activity is slowing down sharply, with a significant drop in the number of new addresses created on the Ripple network.
- Investors are also watching declining flows into spot XRP ETFs, a sign of weakening institutional interest.
- Technical indicators remain fragile, while several support and resistance levels become decisive for the evolution of XRP.
XRP Ledger slowdown worries the market
XRP records a fifth consecutive session of decline and is moving around $1.37, in a general climate of strong risk aversion. Indeed, the Crypto Fear & Greed Index fell to 25, from 49 the previous week, signaling a marked return of fear to the market.
At the same time, the activity of the XRP Ledger watch significant signs of slowdown. Such a decline constitutes a first signal of slowing adoption, interest and demand around XRP.
A few indicators particularly caught the market's attention:
- The number of new addresses on the XRP Ledger fell from around 2,600 on Monday to just 780 on Tuesday;
- XRP is trading around $1.37 after five consecutive sessions of decline;
- Crypto market sentiment has deteriorated sharply with the Fear & Greed Index falling back to 25.
This contraction in network activity comes as investors are already cautiously monitoring the evolution of XRP after several weeks of volatility. A drop in new addresses on a blockchain is often interpreted as a slowdown in speculative interest or organic adoption.
In the case of the XRP Ledger, this decline weakens the token's ability to maintain lasting upward momentum. The market now seems to be waiting for tangible signs of recovery in activity before massively repositioning capital in the asset.
XRP ETFs no longer able to sustain momentum
The other closely monitored signal concerns spot XRP ETFs, whose capital flows are slowing significantly. Thus, net inflows reached only $750,000 on Monday, compared to nearly $11 million last Friday. At the same time, XRP ETF assets under management increased from $1.18 billion to $1.14 billion. This decline indicates a clear weakening of institutional appetite in the short term, even though these products had recently participated in the rebound of XRP.
On a technical level, selling pressure remains dominant. The RSI is moving around 43, a level which reflects a loss of buying momentum, while the MACD remains oriented downward. Additionally, XRP is currently testing support at $1.35 and could slide towards $1.30 if broken. Conversely, a rebound should first allow the token to reconquer the resistance zones located at $1.40 and $1.41, corresponding in particular to the 50-day exponential moving average.
This combination of fundamental slowdown of the network and weakening of institutional flows places Ripple in a delicate situation in the short term. The crypto market remains extremely sensitive to liquidity variations and adoption signals. If XRP Ledger activity starts to rise again and ETFs regain stronger inflows, XRP could stabilize its trajectory. Otherwise, sellers could maintain the advantage in the coming sessions.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
