XRP Network Participation and Demand Concerns

XRP's Network Activity Decline

XRP's network participation weakened significantly over the past two weeks as active addresses dropped from nearly 50,000 to around 25,000. The sharp contraction suggested that fewer users interacted with the network, raising concerns about underlying demand. Although network activity fluctuates during uncertainty, this decline stands out as it erased a substantial portion of recent engagement.

NVT Ratio Insights

While active addresses declined, XRP’s Network Value to Transaction (NVT) Ratio fell to 199.75 after a 15.29% daily decline. This suggests that transaction activity improved relative to the asset’s valuation. A falling NVT ratio often indicates that network value aligns more closely with transaction volume, hinting at easing valuation pressures despite weaker address activity.

Exchange Flows

• Spot flow data showed withdrawals outweighed deposits.
• Inflows: approximately $39.11 million
• Outflows: about $46.76 million
• Negative netflows suggested that more XRP left exchanges than entered, indicating investors are moving tokens into private wallets.

XRP Price Action

At press time, XRP is trading near $1.13 after losing the key support region at $1.30 earlier this month. The chart indicates resistance around $1.37 and a stronger barrier near $1.50. Technical indicators imply that bearish control persists, with buyers yet to regain sufficient control to shift the trend.

Future of XRP's Demand

Despite holding above the major support zone around $1.09, XRP's ability to challenge higher resistance levels lies in attracting buyers. However, sellers continue to control the broader trend.