XRP On-Chain Activity Plunges, With $0.65 Emerging as Key Support

XRP’s on-chain activity has slowed sharply since its peak this year, according to market data.

Glassnode data cited by Cointelegraph on June 10 showed the XRP network’s 90-day average fees fell to about 500 XRP recently from roughly 5,900 XRP in February, a drop of about 91.5%. Network fees are a key on-chain measure of transaction demand. The decline suggests activity has cooled sharply since the overheated first-half rally, when XRP rose above $3.

Investor profitability has also worsened. XRP’s 90-day Realized Profit/Loss Ratio fell to 0.38 recently from 50 at the start of the year. That means investors are realizing an average of just $0.38 in gains for every $1 of losses. Glassnode said a large share of current on-chain transactions is taking place below purchase price, a pattern often seen during periods of market capitulation.

Activity by large holders, however, differs somewhat from past corrections. CryptoQuant analyst PelinayPA wrote that transfers of more than 1 million XRP into Binance have continued to decline since this year’s peak. Exchange inflows from wallets holding 100,000 to 1 million XRP and from wallets holding more than 1 million XRP have fallen 15% and 20%, respectively, since October last year.

PelinayPA said XRP’s recent weakness has been driven more by leveraged-position liquidations and deteriorating sentiment than by large-scale whale selling. During earlier major downturns, deposits from large wallets to exchanges typically surged. This time, the pattern has moved in the opposite direction.

From a technical standpoint, the area around $0.65 is drawing attention as a key support zone. Cointelegraph said XRP has entered a phase of filling the $0.63-to-$1.00 fair value gap formed during its sharp rally late last year. It added that the $0.50-to-$0.65 range has seen concentrated trading based on volume-profile data, while a five-year uptrend line also overlaps with that area.

Some market participants also view the $0.60-to-$0.65 range as a medium- to long-term buying area. Crypto trader Crypto Patel identified $0.60 to $1.00 as a preferred buying range, while analyst Javon Marks has maintained a long-term target of $15 to $18.