XRP transaction demand falls 91.5% as network activity and investor profitability reach new lows, prompting traders to shift their focus to the critical $1.00 to $0.65 support zone. This significant contraction, detailed in a recent Cointelegraph report, suggests a substantial re-evaluation of XRP’s immediate market dynamics following its 2025 peak.
According to data from Glassnode, the 90-day simple moving average of total fees paid on the XRP network has dramatically dropped to just 500 XRP from 5,900 XRP in February – a staggering 91.5% decline. Network fees are a crucial indicator of transaction demand, and this sharp reduction points to a considerable slowdown in on-chain activity, especially when compared to the speculative surge that propelled XRP above $3 in the first half of 2025.
Investor Sentiment Shifts from Profit-Taking to Capitulation
Investor behavior surrounding XRP has undergone a profound transformation. Glassnode’s analysis reveals that XRP’s 90-day realized profit-to-loss ratio has plummeted to 0.38. This means that for every $1 in losses realized by market participants, only $0.38 in profits are being taken. This stark reversal from January and July 2025, when the ratio hit 50 during XRP’s price peak near $3.40, indicates a significant capitulation phase where a larger proportion of on-chain coins are being sold below their acquisition cost.
“The decline in network fees and the flip in the realized profit-to-loss ratio from 50 to 0.38 signal a clear shift in market dynamics, moving from aggressive profit-taking to a period of investor capitulation for XRP.”
Interestingly, exchange data provides a nuanced perspective on holder activity. Crypto analyst Pelin Ay observed a decline in transfers of more than 1 million XRP to Binance since the token’s 2025 peak. Historically, major corrections were often preceded by sharp increases in large XRP inflow cohorts (100,000–1 million XRP and 1 million-plus XRP) as significant holders moved tokens to exchanges for selling. The current data, however, shows a sustained decrease in these large exchange-bound XRP inflows, with the 100,000–1 million XRP and 1 million-plus XRP cohorts decreasing by 15% and 20%, respectively, since October 2025. This suggests that the latest price weakness might be more attributable to leverage-driven liquidations and broader risk-off sentiment rather than aggressive distribution by major holders.
Key Accumulation Zone: The $0.63 Support Level
Examining XRP’s weekly chart reveals a crucial cluster of technical levels between $1.00 and $0.65. A substantial fair value gap, formed during XRP’s rapid ascent in late 2024, spans approximately $0.63 to $1.00. The price has already begun to retreat towards this zone after breaching support near $1.40, highlighting its significance for future price action.
The visible-range volume profile data further reinforces this view, showing relatively light trading activity below current levels until a high-volume node emerges around $0.50–$0.65. The point of control, representing the price area with the highest traded volume, is situated near $0.52–$0.55. This region also aligns with XRP’s five-year ascending trendline, which is projected to intersect near $0.60–$0.65 in the coming months. This confluence of technical indicators makes the $0.63 to $0.65 range a highly anticipated area for potential accumulation.
Some traders are already identifying this zone as a prime accumulation opportunity. Trader Crypto Patel pinpointed $1.00 to $0.60 as a preferred buying range, while market analyst Javon Marks maintains an ambitious long-term breakout target of $15–$18, representing an impressive 1,100% increase from current levels. For investors interested in broader market trends, our related Crypto news offers further insights into the evolving digital asset landscape.
The dramatic fall in XRP transaction demand underscores a significant shift in the cryptocurrency’s market sentiment and on-chain activity. With investor profitability at record lows and a clear capitulation phase unfolding, the focus has firmly shifted to the $0.65 support level as a potential accumulation zone. While the immediate outlook suggests continued pressure, the technical confluence around $0.63-$0.65 could dictate XRP’s long-term trajectory.
