XRP continues to face headwinds as on-chain metrics reveal a dramatic slowdown in network activity and a sharp reversal in holder profitability. Data from Glassnode shows that the 90-day average of network fees on the XRP Ledger has fallen to approximately 500 XRP, down from nearly 5,900 XRP recorded in February—a decline of 91.5%. Since transaction fees are a common proxy for network usage, this drop points to a significant reduction in activity following XRP's rally toward $3 earlier in 2025.
Profitability Reverses Sharply
Investor behavior has also weakened considerably. Glassnode reports that XRP's 90-day realized profit-to-loss ratio has plummeted to 0.38 from 50 during the market peak near $3.40. This means holders are now realizing approximately $1 in losses for every $0.38 in profits, a stark reversal from the profit-taking environment that dominated the first half of last year. The shift underscores the broader risk-off sentiment gripping the crypto market.
Broader Market Pressures
Macroeconomic conditions have added to the pressure. Recent inflation data has kept expectations for lower interest rates subdued, while Bitcoin has struggled to mount a sustained recovery. With liquidity remaining tight, speculative assets like XRP have found it difficult to attract fresh capital, despite ongoing developments such as exchange-traded fund applications and cross-border payment initiatives.
Price Action and Technical Levels
XRP is currently trading near $1.11, having lost support around the $1.40 area. The daily chart shows the token trading below its 20-day, 50-day, 100-day, and 200-day exponential moving averages, which sit near $1.22, $1.30, $1.40, and $1.60, respectively. The alignment of these moving averages continues to favor sellers, while Chaikin Money Flow remains negative at approximately -0.16, indicating capital outflows.
On the four-hour chart, XRP recently rebounded from the lower Bollinger Band near $1.08 but remains below the Bollinger midline around $1.14. The upper band near $1.19 now represents the first major resistance area. Momentum indicators have yet to confirm a recovery; the MACD remains below the zero line and continues to trade beneath its signal line, suggesting buyers have not regained control.
Large Holders Stay on the Sidelines
Despite the weakening on-chain profitability, large XRP holders have not engaged in aggressive selling. CryptoQuant analyst Pelin Ay noted that transfers of more than 1 million XRP to Binance have continued to decline since the token's 2025 peak. Exchange inflows from wallets holding between 100,000 and 1 million XRP have fallen by 15% since October 2025, while inflows from wallets controlling more than 1 million XRP have declined by 20%. According to the analyst, the latest weakness appears to be linked more closely to leverage-driven liquidations and risk-off market conditions than to distribution by large holders.
Some traders are already positioning around lower support levels. Crypto Patel identified the $1.00–$0.60 region as a preferred accumulation zone. For context, similar risk-off dynamics have been observed in other assets, such as Microsoft Stock Slips 1.5% as Analysts Trim Targets Ahead of Q4 Earnings and SpaceX Stock Slips 2% as Lockup, Short Interest Weigh on Sentiment.
This article is for informational purposes only and does not constitute financial advice.
