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- XRP transaction fees have dropped 89% to five-year lows, signaling weakening network activity.
- A descending triangle pattern puts $1.73 in focus if $2 support breaks.
- Seven synchronized 100M XRP transfers highlight major liquidity restructuring on XRPL.
XRP is entering a pivotal phase as its transaction fees plunge to levels not seen since 2020, derivatives activity weakens, and price technicals signal the risk of a deeper correction. Yet beneath the bearish pressure, an unusual surge in whale activity has raised new questions about institutional liquidity flows and potential ecosystem moves.
The combination of weakening metrics and synchronized 100-million-XRP transfers has created one of the most complex market setups XRP has seen in months.
Transaction Fees Collapse as Market Interest Thins
Daily fees on the XRP Ledger have fallen sharply this year. According to Glassnode, total fees have dropped from 5,900 XRP in early February to around 650 XRP per day — an 89% decline, and a level last recorded in December 2020.
The drop in fees aligns with fading derivatives activity. Futures open interest has plunged from 1.75 billion XRP in October to just 0.74 billion XRP, a 59% flush-out. Funding rates have also cooled to 0.001%, signaling reduced appetite from leveraged traders and less confidence in a near-term rebound.
Social sentiment has followed the same trajectory. Analysts note that XRP has slipped into the “fear zone,” reflecting its most negative crowd sentiment since early October. Historically, similar conditions have preceded strong reversals — but only once market structure stabilizes.
Descending Triangle Places $1.73 in Play
XRP’s chart structure is adding to caution. The XRP/USD pair is forming a descending triangle, with $2 acting as a crucial support zone. A confirmed breakdown from this level would activate the pattern’s measured target of $1.73, roughly 15% below the current price near $2.02.
Technical analysts emphasize that the zone between $2.00 and $1.98 has become a critical line in the sand. Holding this range would prevent a deeper slide toward $1.61 — a level that aligns with broader liquidity areas on the weekly chart.
With derivatives markets weakening and spot volumes thinning, XRP’s short-term resilience depends heavily on whether buyers defend this support region.
Seven Whale Transfers Shock XRPL — 700 Million XRP Moved in Minutes
Just as bearish narratives took hold, the XRP Ledger recorded an unusual burst of coordinated whale activity.
Seven separate wallets — each sending exactly 100 million XRP — executed large transfers within minutes. Four of these wallets are linked to Ripple’s known addresses, while the other three remain unidentified.
Blockchain data confirms the timing and precision of the movements, suggesting deliberate coordination rather than routine on-chain activity.
Ripple-Linked Wallets Suggest Internal Liquidity Operations
Ripple frequently moves large amounts of XRP for treasury management, institutional distribution, or operational restructuring. The presence of four Ripple-associated wallets makes direct selling unlikely, according to analysts who track the company’s historical flows.
Three Unknown Wallets Raise New Institutional Questions
The three remaining wallets have no established ties to exchanges, custodians, or previous OTC activity. Their involvement has sparked speculation about new liquidity partners entering the ecosystem, or large-scale settlement preparation similar to past institutional corridors.
Market Significance: Liquidity Signal or Major Setup?
Whale activity alone does not confirm a market trend, but such coordinated transfers often precede changes in liquidity conditions. Traders are monitoring whether these wallets begin sending XRP to exchanges — a move that would hint at distribution — or back into cold storage, which would imply long-term positioning.
For now, the event is viewed as a liquidity restructuring, not a sell-off. But combined with deteriorating on-chain metrics and a fragile technical structure, XRP’s next move will be shaped by whether buyers can defend $2 support and whether whale activity expands in the coming days.
XRP is navigating a tense moment: fees are collapsing, derivatives traders are stepping back, and price structure is turning cautious. But beneath the surface, major wallets are preparing for something — whether it is institutional onboarding, liquidity expansion, or strategic accumulation.
The next few days will determine whether XRP stabilizes above key support or enters a deeper correction toward $1.73.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
