The Ripple market faces a critical warning signal after worrying on-chain data was revealed. A recent Glassnode report indicates that XRP transaction fees have suffered a dramatic 89% collapse since the beginning of the year, reaching lows not seen in five years. This deterioration in network activity, added to a weakened technical structure, suggests that the asset could be on the verge of a significant price correction in the short term.
Detailed analysis shows that the total fees paid daily on the Ledger have descended drastically. Figures went from 5,900 XRP daily on February 9 to barely 650 XRP per day currently. This level marks a setback to volumes that had not been recorded since December 2020, evidencing a substantial drop in usage demand. In parallel, futures open interest has plummeted from 1.75 billion to 0.74 billion XRP. This represents a 59% flush-out in the positions of derivatives traders since early October, confirming the exit of speculative capital.
This phenomenon is not an isolated event, but reflects a profound shift in current market psychology. The drop in fees coincides with a reduction in funding rates, which fell from 0.01% to 0.001%. Therefore, this suggests reduced confidence among traders regarding the immediate recovery capacity of the asset. Likewise, social sentiment has entered a “fear” zone, recording the highest levels of uncertainty and doubt seen in several months.
Will the 2 dollar support withstand the bearish pressure of the technical structure?
Graphic analysis of the XRP/USD pair shows the formation of a descending triangle pattern that threatens current stability. If the price breaks below the triangle’s support line at 2 dollars, the risk of a drop accelerates. Thus, the measured target of the pattern projects a 15% decline, which would take the price toward 1.73 dollars. The zone between 2 and 1.98 dollars remains a critical defense area for bulls.
On the other hand, losing this key level could invalidate any short-term recovery attempt. While extreme negative sentiment sometimes works as a contrarian indicator preceding rallies, the current technical structure weighs heavier. Therefore, holding support is crucial to avoiding further losses toward lower levels like 1.61 dollars. Investors in this cryptocurrency must closely monitor transaction volume as an indicator of a possible return of genuine interest.
XRP’s immediate future seems trapped between network apathy and fragile technical supports. The combination of low fees and the exit of speculative capital paints a cautious picture for the coming weeks. However, a positive reaction at the 2 dollar support could stabilize the scenario, although current technical probabilities favor the bears.
