XRP, network activity ranks second... but price is 'stalling'

▲ XRP/ChatGPT generated image

XRP is showing a strange divergence phenomenon where network activity has reached an all-time high, but its price has failed to break out of its downward trend.

According to U.Today, a cryptocurrency specialized media outlet, on April 9 (local time), transaction activity on the XRP Ledger reached its second-highest level ever. However, the price has shown almost no reaction, an unusual situation. From a technical perspective, XRP remains below its major moving averages, continuing its downward trend without finding a clear breakthrough. The chart clearly shows a bearish sideways phase with minimal volatility.

The movement of on-chain data is highly unusual. Typically, a surge in trading activity is accompanied by high volatility or an influx of speculative capital. However, the current XRP price remains quiet. Experts attribute this phenomenon not to speculative demand from individual investors, but to institutional position readjustments or internal fund movements within exchanges. These internal liquidity flows inflate transaction figures but do not have an immediate impact on the price.

It is also possible that there has been an increase in actual structural usage instead of speculative demand. XRP has long been established as a utility-centric asset. The recent increase in ledger activity can be interpreted as a result of increased practical usage, such as back-end payments, settlements, or system integrations, rather than market buying pressure. If this scenario is correct, the gap between price and network activity is expected to persist longer than anticipated.

Uncertainty is increasing in the market. An increase in network activity can be seen as a precursor to future volatility. However, the current lack of price reaction suggests that this activity is not translating into actual demand. Investors are watching the gap between explosive transaction figures and a quiet price, assessing the market's next direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*