XRP Fees Fall 89% as Price Risks Dipping Under $1.75

The price of XRP is showing signs of a potential correction, with technical analysis and on-chain data pointing toward increased downside risk.

Key Points at a Glance Fee Decline: Daily transaction fees on the XRP Ledger (XRPL) have fallen approximately 89% since February, reaching levels not seen since December 2020.

Reduced Speculation: Open interest in XRP futures contracts has dropped significantly, and funding rates are low, indicating waning confidence among derivatives traders.

Technical Warning: The XRP/USD price chart is forming a descending triangle pattern. A breakdown below the $2 support level could trigger a further decline toward $1.73.

On-Chain Metrics Signal Cooling Activity Data from the analytics firm Glassnode shows a substantial drop in network activity. The total daily transaction fees on the XRP Ledger have decreased from about 5,900 XRP per day on February 9 to roughly 650 XRP per day, marking an 89% decline. This drop to five-year lows suggests reduced usage or speculative interest in the network.

This trend is accompanied by a sharp decline in the futures market. Open interest for XRP has fallen 59% since early October, while funding rates have also dropped. Together, these metrics point to reduced leverage and speculation from traders.

Technical Chart Points to Further Downside Risk From a technical analysis perspective, the price action for XRP/USD is forming a concerning pattern known as a descending triangle. Analysts note that if the price breaks below the triangle's key support level near $2, it could confirm the pattern and trigger a move toward a measured target of approximately $1.73. This represents a potential 15% drop from recent price levels. The zone between $2 and $1.98 is viewed as a crucial area that must hold to prevent deeper losses.

Contrasting Market Sentiment The article notes that social sentiment toward XRP has entered a "fear zone," reflecting high levels of pessimism among investors. However, some analysts historically view such extreme fear as a potential contrarian indicator that could precede a significant price rally, though this perspective is not guaranteed.