XRP transaction demand falls 91.5% as traders focus on $0.65 support

XRP's network activity has fallen significantly since its 2025 peak. According to Glassnode, the 90-day network fee average has dropped by 91.5%, while the realized profit-to-loss ratio has declined to 0.38 from 50. This decline in activity and profitability has led traders to focus on the $1 to $0.65 zone, with some identifying it as a major area of interest.

The sharp contraction in XRP's on-chain activity has been a major concern for investors, as it points to a slowdown in transaction demand. The 90-day simple moving average of total fees paid on the XRP network has fallen to just 500 XRP from 5,900 XRP in February, a decline of 91.5%. This drop in network fees is often used as a proxy for transaction demand, and it suggests that the speculative surge that carried XRP above $3 in the first half of 2025 has lost momentum.

XRP's investor behavior has also shifted, with Glassnode reporting that the 90-day realized profit-to-loss ratio has fallen to 0.38. This means that market participants are realizing $1 in losses for every $0.38 in profits, indicating that a larger share of on-chain coins are being sold below their acquisition cost. This pattern is commonly seen during capitulation phases, where investors are forced to sell their assets at a loss due to market pressure.

However, exchange data offers a different view of holder activity. Crypto analyst Pelin Ay noted that transfers of more than 1 million XRP to Binance have declined since XRP's 2025 peak. Historically, major corrections were preceded by sharp increases in both the 100,000–1 million XRP and 1 million-plus XRP inflow cohorts as large holders moved tokens to exchanges. The current data shows a sustained decline in exchange-bound XRP from large holders, with inflows from the 100,000–1 million XRP and 1 million-plus XRP cohorts decreasing by 15% and 20%, respectively, since October 2025.

The analyst believes that the latest price weakness appears more closely tied to leverage-driven liquidations and risk-off sentiment than aggressive distribution by large holders. This suggests that the current price action is driven more by market sentiment and speculation rather than any fundamental changes in the XRP network or its adoption.

XRP's weekly chart highlights a cluster of technical levels between $1.00 and $0.65. A large fair value gap spans roughly $0.63 to $1.00, created during XRP's rapid rally in late 2024. The price has already started moving back toward that zone after losing support near $1.40. The visible-range volume profile data shows relatively light trading activity below current levels until a high-volume node around $0.50–$0.65.

The point of control, which marks the price area with the highest traded volume, sits near $0.52–$0.55. The same region aligns with XRP's five-year ascending trendline, projected to intersect near $0.60–$0.65 in the coming months. Some traders are already treating the zone as an accumulation range, with Crypto Patel identifying $1.00 to $0.60 as a preferred buying range.

Market analyst Javon Marks maintained his long-term breakout target of $15–$18, representing a 1,100% increase. This target is based on a technical analysis of XRP's chart patterns and trendlines, and it suggests that the current price weakness is a buying opportunity for long-term investors.

The decline in XRP's transaction demand and investor profitability has significant implications for the cryptocurrency market. It suggests that the speculative surge that drove XRP's price above $3 in 2025 has lost momentum, and that investors are now focusing on key support levels. The $1 to $0.65 zone is a critical area of interest, and it will be closely watched by traders and investors in the coming weeks.

The current price action also highlights the importance of technical analysis in cryptocurrency trading. The use of chart patterns, trendlines, and volume profile data can provide valuable insights into market sentiment and potential price movements. Traders who are able to identify key support and resistance levels, such as the $1 to $0.65 zone, can use this information to inform their trading decisions and maximize their profits.

In conclusion, XRP's transaction demand has fallen sharply, and traders are now focusing on key support levels. The $1 to $0.65 zone is a critical area of interest, and it will be closely watched by traders and investors in the coming weeks. The current price action highlights the importance of technical analysis in cryptocurrency trading, and it suggests that investors who are able to identify key support and resistance levels can use this information to inform their trading decisions and maximize their profits.